Strategy's STRC preferred stock closed at $91.79 on Tuesday, its third-lowest close since trading began in July 2025. The decline drags the yield on the $11.50 annual dividend to roughly 12.6% — a sign that investors are reassessing Bitcoin-linked income products just as the underlying crypto pulls back.
The yield math
STRC was marketed with a price-stability objective, but it lacks an automatic mechanism to force trading at par. To bring STRC back toward $100, Strategy would likely need to raise the dividend to around $12.60, according to Bitwise Europe's Andre Dragosh. That would mean a roughly 10% increase in the payout, adding pressure on the company's cash flows.
Short seller interest
The stock's slide also reflects a tactical play. Short sellers can borrow STRC cheaply — around 60 basis points — and the investor base is retail-heavy, making it easier to push the price down. DeFi Development Corp.'s Parker White flagged the low borrowing cost as a key factor. STRC grew from $2.8 billion to $10.5 billion in a year, with $7.7 billion added through at-the-market issuance. That rapid supply growth may be weighing on price.
Other preferreds under pressure
STRC isn't alone. Strategy's other preferred securities — STRK, STRD, STRF — are also trading below par. Kraken chief economist Thomas Perfumo notes that 86% of the variation in STRC's yield spread is explained by Bitcoin price moves. With Bitcoin declining, the whole family of preferreds feels the heat.
A competitor's approach
Strive's bitcoin-backed preferred stock, SATA, offers a contrast. It trades near $100 par with a 13% annualized payout and pays dividends daily. That structure may appeal to income investors who want less price volatility. STRC's single $11.50 annual payment leaves holders exposed to price swings for months between payouts.
The question now is whether Strategy will act to support STRC's price. Dragosh's math suggests a dividend hike to $12.60 could do it — but that decision rests on how badly the company wants to defend its promise of price stability.
