STRC preferred shares remain under $90 amid heavy trading

Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) closed at $88.59 on Thursday after an intraday low of $82.50. Trading volume was about 10.7 million shares, compared with an average daily range near 3.4–3.5 million.

The preferred is issued by the company trading under the MSTR ticker. STRC was structured with a $100 par and a variable dividend that is adjusted monthly; the dividend rate is 12.9%.

When STRC trades above par, the company issues new preferred shares and uses proceeds to buy bitcoin. With STRC trading below par, the company's at-the-market issuance program for the preferred is paused.

Strategy's common stock closed around $112.53 on Thursday, down about 4% for the day.

Analysts at TD Cowen maintained a Buy rating on Strategy's common stock and on its preferred securities, and set a $400 price target for the common shares. The firm cited three investor meetings with the company's chief financial officer, Andrew Kang, and included this summary: “[Strategy CFO Andrew Kang] is emphasizing a more mature framework in which preferred dividend obligations, USD reserves, convert management, credit perception, ATM discipline and occasional BTC sales all sit underneath the same objective: maximize long-term BTC/share while preserving flexibility through market cycles.”

TD Cowen wrote that, in the near term, the company may prioritize rebuilding cash reserves and supporting preferred holders over immediate bitcoin purchases when market conditions are less constructive.

Thursday marked the longest stretch STRC has traded below $90 since the preferred debuted at $90 in July 2025. The day’s turnover made it one of STRC’s largest-volume trading sessions on record.