MicroStrategy's preferred stock ticker STRC closed at a record low of $88.59 on Thursday, after touching an intraday low of $82.50. The perpetual preferred, designed to trade near its $100 par value and paying an 11.5% annual dividend, has fallen more than 10% over the past month. That decline is more than a paper loss — it directly crimps the company's main channel for raising cash to buy Bitcoin.
The fall below par
STRC was structured to stay close to $100. Instead, it's been sliding for weeks. The stock's slide means every new share issued below par raises less cash for MicroStrategy's Bitcoin treasury — the firm holds roughly 846,842 BTC. CEO Phong Le has previously said the company could sell Bitcoin when that option beats issuing equity to pay preferred dividends. That possibility is getting less theoretical.
The dividend dilemma
The obvious fix is a dividend hike. Analyst Bull Theory argues MicroStrategy may need to raise the rate to restore the peg. But that would increase cash obligations and could force a Bitcoin sale. Peter Schiff called the decline a structural failure. Jesse Myers attributed it to a leverage-driven liquidation cascade and predicts a dividend increase to 11.75% or 12% on June 30. Raising the rate would help STRC recover toward par — but it would also eat into cash flow.
What happens on June 30
That date is the next signal. STRC shifts to twice-monthly payments starting June 30. The timing isn't great. Broader markets are skittish — nine of 18 Federal Open Market Committee participants expect at least one rate hike in 2026. That pressure is weighing on risk assets across the board. If MicroStrategy does boost the dividend, the market will quickly price in whether the move is enough to stabilize STRC — or whether a Bitcoin sale becomes the safer bet.
