Strategy’s STRC falls to $91.79 after recent BTC buys

Strategy’s perpetual preferred stock STRC declined to $91.79 on Tuesday, a 3.58% move for the day and roughly 8.2% below its $100 par value. The company reported buying 1,587 Bitcoin for about $100 million last week.

STRC is a variable-rate perpetual preferred that targets an 11.5% dividend at a $100 par value. With the share price below par, the effective yield for current holders rises to about 12.5%.

Strategy disclosed the 1,587 BTC purchase on Monday. The week before it bought 1,550 BTC for roughly $100 million, bringing its stated holdings to 846,842 BTC.

Markus Thielen, CEO of 10x Research, linked the preferred share decline to the recent Bitcoin purchases and said investors would prefer the company preserve cash for dividend payments instead of increasing its BTC position.

Nick Ruck, director of LVRG Research, pointed to broader risk-off sentiment in crypto markets and noted concerns around the company’s expanding capital structure and ATM issuance as pressures on the preferred shares.

The parent company’s common stock, MSTR, fell 6.35% on Tuesday to close at $122.81, about 67% below its level a year earlier. Competing perpetual preferred shares from Strive (SATA) were trading near $100 and offered an effective yield around 13%.

Analysts said sustained selling pressure on STRC could force the company to allocate more cash to support the preferred dividend if it seeks to keep the shares trading near par. Market participants continue to watch how the firm balances dividend commitments and further Bitcoin purchases.