#STRCHitsAllTimeLow

Strategy's STRC preferred stock, the Variable Rate Series A Perpetual Stretch Preferred designed to hold steady at $100 par value, has cratered to an all-time low of $74.57 as of the June 26 close, with pre-market indications sliding further to $71.90.

This represents a 25.4% discount to par, a stunning collapse for a security marketed as a stable income vehicle.

The decline has been relentless.

STRC traded at $89 on June 17, broke below $83 intraday on June 19, closed at $88.59 on June 20 with 10.7 million shares exchanged, and then plunged through $75 on June 26 with another 6.28 million shares trading.

The root cause is Bitcoin's bear market.

BTC at roughly $59,943, down over 50% from its October 2025 record of $126,000, has shredded the premium that investors once assigned to Strategy's capital structure.

On Friday, June 26, Strategy's enterprise mNAV, the ratio comparing its total market value to the value of its BTC holdings, dipped below 1 for the first time, meaning the market now values the entire company at less than the bitcoin it holds.

Strategy sits on over $13 billion in unrealized BTC losses, an amount that exceeds the market caps of Dogecoin, Cardano, Chainlink, and hundreds of other tokens combined.

The STRC collapse has crippled Strategy's primary capital-raising mechanism.

Because STRC trades well below $99, the company has paused its at-the-market share issuance program.

Issuing new STRC near $74 while paying $11.50 per share annually in dividends implies an effective financing cost above 15%, far exceeding the advertised 11.5% rate.

In late May, Strategy sold 32 BTC for $2.5 million to fund STRC dividends, marking the company's first-ever bitcoin sale, a stark reversal of its accumulation-only ethos.

TD Cowen maintains a Buy rating on MSTR common stock with a $400 target, but the preferred stock's trajectory tells a different story.

Rival Strive has launched a competing preferred product, SATA, paying daily dividends, adding competitive pressure.

The dividend rate has been frozen at 11.50% for four consecutive months despite the stock trading below par, suggesting Strategy is balancing cash obligations against the risk of escalating costs.

For preferred stock investors, the 15.4% effective yield at current prices is tempting, but it comes with real risk:

Dividends are not guaranteed.

The security is perpetual with no maturity.

Further BTC downside could push STRC toward $60 or below.

The question is whether the yield compensates for the structural risk, and right now the market is answering no.

@Gate_Square