STRC preferred closes 11% below par at $89

STRC, the Variable Rate Series A Perpetual Stretch Preferred Stock issued by Strategy, closed at $89 on Wednesday, 11% below its $100 par and down from a daily low of $88.50, the lowest non-adjusted close in at least 52 weeks.

The security, launched in July 2025, is bitcoin-backed and structured to deliver a high yield while targeting a stable price near $100 through monthly rate adjustments. It pays an effective 12.9% yield as a cash dividend distributed semi-monthly.

Company figures showed about $417.5 million in STRC trading volume on Wednesday. Strategy operates a program to issue new STRC shares at par to buy bitcoin when the security trades above par; that at-the-money issuance is paused while STRC trades at a discount.

The $89 close is among the few times STRC has traded below its $90 initial public offering price and appears to be the lowest non-adjusted daily close on record for the series. Market participants have noted STRC often dips during periods of bitcoin volatility.

Bitcoin has hovered around $65,000 in recent days ahead of the Federal Open Market Committee meeting under new Federal Reserve Chair Kevin Warsh. On Wednesday the Fed voted to keep interest rates steady.

Strategy has used preferred offerings to fund bitcoin purchases and shareholder distributions. In late May the firm sold 32 BTC for about $2.5 million to support distributions on STRC, the company's first bitcoin sale since it began accumulating in 2022. Analysts including Benchmark and TD Cowen have pushed back against concerns that such sales and market weakness could trigger a so-called ‘death spiral' for the issuer.

STRC ranks senior to other preferred series such as Stride (STRD) and Strike (STRK) and to the company's common shares, while remaining junior to Strife (STRF) and outstanding debt. Those other preferred series generally pay fixed dividends at rates below STRC's variable yield. A sibling preferred, SATA, traded above $99 and offered a higher stated rate on Wednesday, according to company data.

Chairman Michael Saylor described the launch of STRC as the company's ‘iPhone moment.' Strategy's common shares were down roughly 5% around market close on Wednesday.