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Bitcoin (BTC) was trading at $62,721.39 at the time of writing after slipping below $63,000, extending a pullback that coincided with renewed weakness across Strategy’s preferred shares. STRC fell to a record low of $85.32 on June 18 before recovering to $88.59, leaving it more than 11% below its $100 par value.
The selloff has redirected attention toward the financing model underpinning Strategy’s Bitcoin treasury strategy. STRC’s widening discount has fueled debate among market participants over whether preferred shares trading far below par could make future Bitcoin purchases more expensive to finance.
BREAKING: $STRC just hit at $85.32, its lowest level ever.
It could force Strategy to sell more Bitcoin.
STRC is Strategy's preferred stock that pays an 11.5% annual dividend. When it trades below its $100 par value, the market is signaling that the yield is not high enough.… pic.twitter.com/EmBXwbKaTC
— Bull Theory (@BullTheoryio) June 18, 2026
STRC was introduced in July 2025 as a perpetual preferred stock designed to help Strategy raise capital for additional Bitcoin purchases without pledging its existing holdings as collateral. The security pays a variable dividend that currently stands at 11.5% on an annualized basis and is intended to trade close to its $100 face value through periodic dividend adjustments.
STRC’s drop below par indicates investors are reassessing how much compensation they require for holding the security.
At prices near $85, STRC’s effective yield rises to roughly 13.5%, increasing pressure on Strategy to offer a higher payout if it wants to attract buyers and move the stock back toward par. A higher dividend rate would also increase annual cash obligations at a time when the company’s financing flexibility appears narrower than it was earlier this year.
Bull Theory estimated on X that Strategy’s shrinking net asset value premium reduces the appeal of issuing additional common shares to fund future Bitcoin purchases. Market maker QCP said that Strategy’s current liquidity position can fund preferred-share dividends for roughly seven and a half months. It said the company may eventually need to raise additional capital, dilute shareholders further, or sell Bitcoin if alternative funding sources become less attractive.
Concerns intensified after Strategy disclosed in a June 15 filing that it sold 32 BTC between May 26 and May 31 at an average price of $77,135, generating $2.5 million. The company said the proceeds would help meet preferred-stock obligations, marking its first known Bitcoin sale after years of maintaining an accumulation-only approach.
STRC’s decline didn’t happen in isolation.
Bitcoin has spent nearly two weeks fluctuating near the lower end of its recent trading range and lost momentum after gains tied to the US-Iran ceasefire faded. Deribit data tracked by Laevitas showed increased demand for downside protection over the past two days, including July 31 put options at the $52,000 strike and July 10 puts at $55,000.
Prediction markets have also grown more defensive. Kalshi traders currently assign a 68% probability that Bitcoin reaches $50,000 before returning to $100,000.
Arca chief investment officer Jeff Dorman argued that uncertainty surrounding STRC has begun affecting Strategy’s broader capital structure. In a post on X, Dorman said Strategy may need to sell a larger amount of Bitcoin and MSTR shares to help push STRC back toward par value or risk further weakness across its capital structure.
MSTR pickle continues: What I laid out 2 weeks ago is still the only viable path to save $BTC and $MSTR in the short-run.
Either sell an enormous amount of BTC and MSTR to help bring $STRC back up near par, and at least buy yourself some time, or continue to watch every part… https://t.co/JAztCieaZ1
— Jeff Dorman (@jdorman81) June 18, 2026
That interpretation isn’t universally accepted.
Matt Cole, CEO of Strive, said the sharp drop in STRC and Strive’s own SATA preferred shares resembled a leverage-driven liquidation event rather than a deterioration in underlying credit quality. He noted that both securities attracted buyers near their intraday lows and rebounded quickly, which he said pointed to continued demand at lower price levels.
Today was the most difficult day in the history of Digital Credit.$STRC traded as low as $82.50 before recovering sharply. $SATA traded from par down to the low 90s before also rebounding. It was a difficult day for many investors.
What happened today was a leverage…
— Matt Cole (@ColeMacro) June 18, 2026
Strategy maintains that its balance sheet remains capable of supporting preferred-share obligations for decades.
According to its June 15 filing, the company’s Bitcoin holdings, valued at roughly $55 billion, can cover approximately $1.7 billion in annual interest and dividend expenses for 32 years. Strategy also estimated that Bitcoin needs to appreciate by only 3.1% annually to offset those obligations.
Those figures provide a counterpoint to current funding concerns, though investors appear focused on shorter-term funding conditions rather than long-term assumptions. STRC spent much of its trading history fluctuating near par value, making the June 18 decline the first sustained signal that preferred shareholders are demanding a larger risk premium.
For now, the market seems less concerned about whether Strategy can meet obligations decades from now and more interested in how it funds them if preferred shares remain under pressure.
STRC was trading at $88.59 at publication, still more than 11% below its $100 par value.
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