The perpetual preferred stock for Strategy, ticker STRC, collapsed to an all-time low of $86.40 on Thursday morning. The double-digit discount against its $100 par value severely damages the asset’s primary utility as a capital-raising vehicle for the corporate giant. The drop arrives amid broader market hesitation and the intense financial strain of a recent $1.5 billion convertible debt repayment, placing immediate pressure on the company’s leveraged cryptocurrency reserves.
Strategy officially suspended its at-the-market issuance program for STRC this week. Issuing new shares at a discount exceeding 11% is highly dilutive to the firm. To manage liquidity for the asset’s 12.9% effective annual yield, the company took the unusual step of liquidating 32 Bitcoin, worth approximately $2.5 million, to cover STRC dividend obligations.
The liquidation triggered a roughly 5% decline in MSTR common shares earlier this week. STRC was initially structured in July 2025 to trade near par value and attract yield-seeking investors avoiding pure cryptocurrency exposure. Instead, the asset is suffering a price plunge well below its $100 par value as heavy bearish options bets signal deep skepticism regarding Strategy’s ability to maintain the high-yield payouts.
How the STRC Halt Forces a Shift in Strategy’s Bitcoin Model
The decision to liquidate 32 Bitcoin marks a severe departure from the company’s core operating thesis. This is Strategy’s first sale of its primary reserve asset since 2022. By freezing the STRC issuance program, executives are cutting off a critical funding channel previously used to finance bulk corporate Bitcoin acquisitions.
Without the ability to dilute preferred stock at a premium, the firm must rely on standard debt mechanisms or its existing cash flows to satisfy future obligations. The failure of STRC to hold its par value indicates an upper limit to the premium yield investors are willing to finance.