Strategy STRC Stock Hits Record Low, Raising Concerns Over BTC Buying

9 hours ago Updated 9 hours ago

By Manisha M

Contributor

Manisha Mishra is a journalist, editor, and researcher specializing in cryptocurrency, fintech, and emerging technologies, with more than seven years of industry experience. She most recently served as Editor-in-Chief at 99Bitcoins, leading editorial strategy and overseeing research reports that reached millions of readers worldwide. Prior to that, she headed the research division at AMBCrypto, focusing on on-chain analytics, market intelligence, and regulatory developments across the digital asset sector. Over the course of her career, Manisha has interviewed more than 40 founders, investors, and industry executives, while also producing and hosting video content on blockchain and Web3. She holds a Master’s degree in Mass Communication and is the co-founder of Web3 Minutes, a digital media platform dedicated to Web3 news, insights, and education.

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Highlights

Strategy's STRC preferred stock plunged to a record low of $88, falling 11% below its $100 target price.
The decline has forced Strategy to pause a key funding channel used to finance its aggressive Bitcoin purchases.
Technical indicators remain bearish, with STRC's RSI dropping into oversold territory after a steep June selloff.

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Strategy’s preferred stock STRC (popularly known as Strategy STRC Stock), one of the company’s key funding tools for buying Bitcoin, has dropped to a record low, raising fresh questions about how quickly the Michael Saylor-led firm can continue its aggressive BTC accumulation strategy.

STRC, formally known as Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, traded at $88 on June 18, its lowest level since launching in July 2025. The stock is now trading almost 11% below its $100 target price, a level the company aims to maintain through monthly dividend adjustments.

Why Strategy STRC Stock Matters?

The decline is important because Strategy uses STRC as a funding source for its Bitcoin purchases. When STRC trades above its $100 par value, the company issues new shares through its at-the-market (ATM) program and uses the proceeds to buy more Bitcoin. However, with the stock now trading below par, Strategy has paused new issuances under this program, temporarily shutting one of its major Bitcoin acquisition channels.

Early this month, Strategy revised the terms of STRC by changing dividend payouts from a monthly schedule to semi-monthly payments. The amendment was approved by shareholders of both MSTR and STRC.

STRC Dividend Pressure Previously Forced Bitcoin Sale

The pressure on STRC comes just weeks after Strategy disclosed its first-ever Bitcoin sale since starting its BTC treasury strategy in 2022. Strategy sold 32 BTC for around $2.5 million in late May to fund dividend payments related to STRC. The move surprised investors because Executive Chairman Michael Saylor has long maintained that the company would not sell its Bitcoin holdings.

To ease concerns, Strategy recently revealed that it has built a $1.1 billion U.S. dollar reserve to cover future preferred dividends and debt obligations. At the same time, the company continued expanding its Bitcoin holdings by purchasing 1,587 BTC through proceeds raised from common stock sales.

As of now, Strategy owns approximately 846,842 BTC, accounting for nearly 4% of Bitcoin’s maximum supply, making it the world’s largest corporate Bitcoin holder.

Strategy STRC Stock Price Action Turns Bearish

From a technical perspective, the daily chart shows STRC has shifted from a steady growth phase into a prolonged consolidation near the $100 mark before witnessing a sharp breakdown in June.

The latest selloff pushed the stock to $88, breaking several short-term support levels. Trading volumes have also increased significantly during the decline, indicating strong selling pressure from market participants.

RSI Signals Oversold Conditions

The Relative Strength Index (RSI) currently stands near 24, placing Strategy STRC Stock firmly in oversold territory. While this could lead to a short-term relief bounce, the overall trend remains bearish as the stock continues making lower highs and lower lows.

For bulls, reclaiming the psychological $100 level will be crucial. Until then, STRC may remain under pressure, potentially limiting one of Strategy’s most important funding avenues for future Bitcoin purchases.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.