STRC tumbles to $82.53, tests Saylor’s bitcoin funding

STRC, Strategy Inc.’s variable-rate preferred stock, hit an intraday low of $82.53 on June 18 and recovered to close at $88.59 after a volatile trading session. The security traded more than 10 million shares that day.

The intraday print placed STRC roughly 11% to 17% below its $100 par target, depending on whether one uses the close or the intraday low. The preferred carries an annualized dividend rate of 11.50%, paid semi-monthly after the company moved from monthly payments earlier in June. At the June 18 close the effective yield on the share price was about 12.98%.

Strategy designed the preferred so the dividend rate can be adjusted monthly to attract buyers when the price falls; if the preferred trades above $100 the company can add supply through at-the-market issuances. The securities are listed on Nasdaq and are not directly collateralized by the company’s bitcoin holdings; they carry a preferred claim on residual assets after debt.

Market participants described the plunge as driven by leveraged positions and forced selling rather than an immediate change to Strategy’s balance sheet. Jesse Myers called the drop “a liquidation cascade” on social media, noting months of tight trading near $99 to $100 that encouraged leverage and set up forced unwinds. Other observers warned that continued weakness in bitcoin could add selling pressure across STRC and related positions.

Company filings show Strategy held about 846,842 BTC as of mid-June and STRC had roughly $10.49 billion in notional outstanding. The preferred is one part of Strategy’s capital-raising program that funds bitcoin purchases.

Michael Saylor has described using AI tools to help design the preferred’s structure. Some market commentators questioned how high the dividend would need to rise to restore confidence if forced selling continued; one critic noted the intraday low represented about a 17.5% decline from prices paid by some recent buyers.

The June 18 session left STRC trading below its intended $100 peg and drew renewed attention to the interaction between Strategy’s capital markets programs and its bitcoin accumulation strategy. Dividends on the preferred are not guaranteed and the rate remains adjustable.