Strategy (MSTR) shares fell nearly 10% on 24 Jun as Bitcoin (BTC) traded at a two-year low, intensifying pressure and scrutiny on the company's STRC preferred stock, which has drifted further from its intended $100 reference value.
Strategy Shares Shrink as Bitcoin Pullback Stokes STRC Concerns
25 June 2026 - 00:41 CEST
By Ana Pereira
The company's Class A shares closed at $94.13 on 24 Jun, down 9.4% on the day. Bitcoin was trading at around $60,500 at 21:08UTC, down roughly 4% over the previous 24 hours, according to CoinGecko.
The decline comes as STRC, one of several preferred securities launched by Strategy to help fund its Bitcoin acquisition plan, continued a recent slide. The preferred shares closed at $80.84 on Wednesday, down 7.4% on the session and nearly 19% below their $100 reference value.
As the shares drift further below their intended trading level, investors are increasingly debating whether the structure can continue supporting the company's Bitcoin acquisition programme as originally envisioned.
The debate intensified after Strategy disclosed its first Bitcoin sale in four years, selling 32 BTC in May to fund STRC dividend payments. The move marked a departure from Saylor's long-standing "never sell" rhetoric and renewed scrutiny of the company's financing model.
Discount widens
STRC is a preferred share issued by Strategy that pays investors a variable dividend. The stock was designed to trade near its $100 par value, with the dividend rate adjusted each month to make the shares more attractive when they trade below that level.
Earlier this month, shareholders approved a proposal to switch STRC from monthly to semi-monthly dividend payments. Strategy said more frequent distributions could make the preferred stock more attractive to income-seeking investors and help it trade closer to its $100 par value.
At the Bitcoin conference in May, Strategy's Saylor defended the structure as a low-volatility alternative to Strategy's common stock. He said STRC was designed to provide "low volatility and capital preservation" and argued that more frequent dividend payments could help reduce volatility and improve liquidity.
The shares have moved in the opposite direction since, falling to $80.84 on 24 Jun, their lowest level since launch. STRC currently pays an annual dividend of $11.50 per share, equivalent to an 11.5% rate based on its $100 par value. With the stock trading at around $80, the effective yield for new buyers has risen to about 14.2%.
The widening discount has led some market participants to describe STRC as "depegging" from its $100 par value. Unlike a stablecoin, however, STRC was never designed to maintain a fixed market price. Strategy uses dividend adjustments in an effort to encourage trading near par, while the share price remains subject to market demand.
Critics seize on losses
Bitcoin critic Peter Schiff seized on the sell-off, arguing losses on STRC have already eclipsed the dividends paid since launch.
"Saylor promoted $STRC to risk-averse retirees by assuring them that all the volatility had been stripped out," Schiff wrote on X. "STRC is down over 5% today, more than 17% below what many retirees paid last month. Almost two years of dividends gone."
Schiff later accused Saylor of making "material misrepresentations" about the preferred stock and described it as a "Ponzi scheme."
Funding vehicle
The performance of STRC is attracting attention because preferred securities have become a key source of funding for Strategy's Bitcoin accumulation strategy.
The company, the world's largest corporate holder of Bitcoin with 847,363 coins on its balance sheet, has raised capital through a combination of common stock offerings, convertible debt and preferred shares to finance additional cryptocurrency purchases.
According to company data, STRC represents more than $10bn in notional value and approximately $8.5bn in market capitalization.
Some investors have warned of a potential negative feedback loop, in which a weaker STRC price makes fundraising more difficult, reducing Strategy's flexibility to finance future Bitcoin purchases and putting additional pressure on both assets.
The implications extend beyond Strategy. Earlier on 24 Jun, the Bank of Korea warned that crypto markets are becoming increasingly interconnected with traditional finance, identifying large digital asset treasury companies as a potential channel through which stress could spread across financial markets.
