Strategy's STRC Stock Slips 17% Below Its $100 Target — Here's Why
STRC, a special stock from Bitcoin company Strategy, fell below $83 as Bitcoin dropped and investor confidence weakened.
Image source: CoinDesk
A special stock that was supposed to stay steady just took a tumble. Strategy (a company famous for holding huge amounts of Bitcoin) issued a security called STRC. This is a type of preferred stock (a special kind of share that usually pays regular, fixed payments to investors, a bit like a steady income). STRC was designed to always trade around $100 — its par value (the official set price it's meant to stick to).
But on Thursday, STRC dropped to as low as $83, about 17% below its $100 target — the lowest level since it launched in July 2025. That's a big problem for a security that's supposed to be calm and stable.
Why does the $100 price matter so much? Keeping STRC near $100 lets Strategy raise money cheaply by selling more shares. That money helps pay the generous 11.5% annual dividend (yearly payout to investors). When the price falls, that whole system gets harder to maintain.
Here are the main reasons STRC slipped:
- Bitcoin's price fell sharply. Strategy's business is tied closely to Bitcoin, which recently dropped toward $64,000 from above $80,000. When Bitcoin falls, confidence in Strategy weakens.
- A bond buyback at a discount. Strategy bought back some of its convertible notes (a type of loan that can later turn into shares) at an 8% discount, which worried investors.
- Dwindling cash reserves. The company had smaller safety buffers of cash on hand.
- A rival stepped up. Competitor Strive announced it would start paying a daily dividend on its similar product, making STRC look less attractive.
The bottom line: STRC was meant to be a low-risk, high-yield investment. This episode shows that even "stable" products can wobble when the assets behind them — in this case Bitcoin — start to fall.
This is an AI-generated summary. Read the original article at: https://www.coindesk.com/markets/2026/06/20/how-strc-lost-its-par-the-timeline-behind-strategy-s-preferred-stock-meltdown