Key Highlights
- STRC stock dropped more than 7%, nearing its 52-week low.
- Bitcoin’s fall below $60,000 added pressure on Strategy-linked assets.
- STRC traded around $80.98 after closing the previous session at $87.31.
Strategy Inc. (NASDAQ: STRC), the variable rate perpetual preferred stock issued by Bitcoin treasury firm Strategy Inc., plunged more than 7% on Wednesday, trading as low as $80.98 and approaching its yearly low. The movement reflects sharp selling pressure amid a broader decline in Bitcoin (BTC) price.
Earlier today, Bitcoin fell below the key $60,000 psychological level, trading around $59,754, down roughly 4.3% in the last 24 hours. The cryptocurrency has faced sustained headwinds, including ETF outflows, macro uncertainty, and profit-taking.
The decline has weighed on Strategy-related securities, as both common shares and preferred instruments such as STRC are closely tied to the company’s large Bitcoin holdings.
Stock slide hasn’t stopped accumulation
According to data from Yahoo Finance, STRC was down approximately 7.25% at $80.98. The stock closed the previous session at $87.31 and opened at $86.00. The stock’s 52-week range sits between roughly $79.85 and $100.42.
STRC, designed to offer investors Bitcoin exposure with variable dividend yields (currently around 11.50%), has traded below its $100 par value in recent months. Its performance remains tightly linked to Bitcoin’s volatility despite its structured credit-like features.
Strategy Inc currently holds 847,363 BTC, valued at approximately $50.5 billion at current prices, with an average acquisition cost of around $66,384 per Bitcoin. The company maintains a substantial cash buffer of about $1.4 billion, providing over 10 months of coverage for dividends and obligations.
STRC carries an annualized dividend rate of 11.50% (based on $100 par value) and recently transitioned to semi-monthly payments. At the current trading price near $80.98, the effective yield stands at approximately 14.22%.
Additional factors behind the decline
Beyond Bitcoin’s weakness, the drop in STRC reflects deepening investor concerns over the sustainability of its high dividend payouts.
The stock’s persistent trading below its $100 par value has raised doubts about Strategy’s ability to maintain the variable rate mechanism designed to stabilize the price. Earlier Bitcoin sales to cover dividends have fueled fears of capital erosion.
Weakening liquidity buffers and broader skepticism about long-term dividend coverage have also contributed to selling pressure. Many investors now question whether the preferred stock can deliver on its promised lower-volatility Bitcoin exposure amid ongoing volatility.
Peter Schiff renews criticism
The decline has also reignited criticism from longtime Bitcoin skeptic Peter Schiff, who has repeatedly targeted Strategy Executive Chairman Michael Saylor. Schiff has called Strategy’s model unsustainable, labeling it a “Ponzi” and warning that the company may eventually need to sell Bitcoin to meet dividend obligations.
In an X post on Wednesday, Schiff accused Saylor of misleading investors, particularly retirees, by promoting STRC as a lower-volatility Bitcoin play while the preferred stock has declined significantly.
Long-term holder sees opportunity
The synchronized drop in BTC and STRC underscores the high beta nature of Strategy’s instruments. While short-term sentiment remains bearish, long-term holders view dips as potential buying opportunities given Strategy’s Bitcoin-per-share accumulation strategy.
Investors are closely watching Bitcoin’s ability to defend key support levels around $57,000–$55,000 and upcoming macroeconomic data. For STRC holders, the focus remains on dividend sustainability and the company’s cash buffer amid ongoing market volatility.
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