Strategy's STRC preferred stock closed at $89 on Wednesday, sliding about 11% below its $100 par value, as options data and analyst warnings pointed to growing stress in the company's capital structure. The year-to-date decline of roughly 10.7% has erased gains, and the put-call ratio for contracts expiring June 18 sits at 1.13, with bearish bets outpacing bullish ones.
Options Market Puts Pressure on STRC
Options data for STRC contracts expiring June 18 shows put open interest of 8,951 contracts versus 7,906 calls. Key put strikes include $60 (1,912 contracts), $80 (1,230), and $85 (916). Max pain is $95, and net gamma exposure stands at negative $1.1 million per 1% move — meaning the stock faces amplified selling pressure if it continues to decline. The put-call ratio above 1 signals traders expect further downside, a sharp reversal from the design intent of STRC, which was supposed to trade near par through monthly dividend adjustments.
Dividend Coverage Halved as Bitcoin Price Falls
Strategy holds 846,842 BTC, worth roughly $54.2 billion, providing 32 years of dividend coverage based on annual preferred dividend obligations of about $1.7 billion. That's a steep drop from the 71 years of coverage the company claimed last November, when Bitcoin's price was higher. The asset has since halved in value, directly squeezing the cushion. Andre Dragosch, head of research at Bitwise Europe, estimates a dividend of roughly $13 annually — about 13% of par — would be needed to restore STRC to par under current conditions. That implies either Saylor must raise the payout or the rate environment must ease.
Risk of a Downward Spiral
CryptoQuant analyst JA Maartunn warned that if Strategy sold Bitcoin to cover dividends, it could create selling pressure, lower BTC prices, reduce reserve value, and shorten dividend coverage — potentially triggering a downward spiral. Quinn Thompson, CIO of Lekker Capital, said pressure across Strategy's capital structure is likely to persist until the company strengthens its balance sheet and improves liquidity, with weakness extending beyond STRC. The stock is now trading at levels that imply investors want a higher payout, but raising the dividend would further strain cash flows. The next move is up to Michael Saylor — whether he raises the dividend or waits for rate relief, STRC's path back to par remains uncertain.
