#What is the Current Status of Strategy's Perpetual Stretch Preferred Stock?
Strategy’s Perpetual Stretch Preferred Stock, commonly referred to as STRC, has recently experienced a significant decline, reaching its lowest value since its launch in July 2025. The stock fell to an intraday low of $90.40 on Friday, but later managed to recover slightly to about $93.40 in afternoon trading, according to market data from Yahoo Finance.
The design of STRC aims to keep its trading price near the stated amount of $100. This mechanism allows Strategy to adjust the dividend rate on a monthly basis to encourage the stock's price to trend towards par value.
The recent downward movement raises concerns regarding the financial model of Strategy. The stock currently features an annualized dividend rate of 11.50% based on its $100 face value, although this rate can change every month. If the downturn persists, it may shift the dividend rate to a minimum of 11.75%. Such a rise would likely escalate Strategy’s annual financial obligations by approximately $26 million on its $10.5 billion STRC issuance.
The pressure on STRC coincides with a notable dip in Bitcoin, which fell below $60,000 briefly on Friday—its lowest point since October 2024—before recovering to around $62,000. This represents a decrease of about 3% within a 24-hour window.
The overall cryptocurrency market also faced challenges, with total market capitalization decreasing by about 3% to about $2.2 trillion, reflecting a similar pattern to Bitcoin’s decline. This situation resulted in a substantial wave of forced liquidations in the derivatives market, with figures from CoinGlass indicating around $1.72 billion worth of liquidations occurred in just 24 hours. This included approximately $1.41 billion in long positions being liquidated and $305 million in short positions.
Furthermore, Strategy's stock price extended its decline, plunging to an intraday low of approximately $114, its weakest point since February 2026. By Friday afternoon, it managed to rise to around $120.
This downward trend follows Strategy’s recent announcement that it had sold 32 Bitcoin between May 26 and May 31 for around $2.5 million, which was executed to facilitate preferred stock distributions. This marked the first sale of Bitcoin by Strategy in several years.