Strategy's preferred stock STRC is trading just below its $100 par value, and that's a problem. The stock closed at $99.47 on Friday, according to market data. That sub-par price threatens the at-the-market (ATM) share issuance program that has been one of the largest single buyers of Bitcoin in the world.
How the STRC machine works
STRC is a different beast from spot Bitcoin ETFs. ETF flows go both ways—investors can buy in or sell out. STRC only buys Bitcoin, never sells. Every dollar used to buy an STRC share creates a bid for Bitcoin in the market. No amount of STRC selling can create a Bitcoin ask. The catch: Strategy can only issue new STRC shares when they trade at or above the $100 par value. Proceeds above par go straight into buying more Bitcoin.
That one-way buying power has been enormous. During the week of March 9-15, 2026, STRC generated $1.18 billion from share sales and bought 17,994 BTC at an average price of $70,946. In the same week, all 12 US spot Bitcoin ETFs combined took in roughly $763 million. STRC alone outpaced them.
The sub-par squeeze
The current price near $99.47 means the ATM machine is stalled. That's not the first time this year. Earlier, a routine ex-dividend dip paused STRC issuance and collapsed weekly Bitcoin purchases from 17,994 to just 1,031. The market snapped back then. This time feels different. A BitcoinQuant chart shows visible price pressure across the preferred series since March, and the stock has struggled to reclaim par.
The timing isn't great for Strategy. The company needs STRC above par to keep buying at scale. No issuance, no fresh Bitcoin bids. The difference between 17,994 BTC and 1,031 BTC a week is the difference between a tsunami and a trickle.
What a broken peg means
A real credit event—where the STRC peg breaks and stays broken—would shut down the ATM program entirely. That would remove one of the largest systemic bids in the Bitcoin market. Strategy doesn't pay a dividend on STRC; the dividend is described as the cost of keeping the machines running. If the stock stays below par, that machine stops.
The stakes are clear: every dollar used to buy an STRC share creates a Bitcoin bid. If the program halts, that bid disappears. The market would have to absorb whatever selling pressure comes from ETF outflows without that steady drip of STRC-driven demand.
The volatility paradox
STRC has undergone a remarkable transformation since launch. Its 30-day rolling volatility has compressed from about 18% to about 2%, with latest data showing near 4.2%. Lower volatility means smaller haircuts in leverage markets, allowing more borrowing capacity per dollar held. That has attracted institutional capital. But the same compression that makes STRC efficient also makes the peg fragile. A small move below par can cascade.
The stock now sits just cents away from the line. Whether it can rebound above $100—and keep the Bitcoin buying machine running—is the question hanging over this market. No one knows yet if the current price pressure is a temporary dip or the start of something worse.
