MicroStrategy STRC Preferred Stock Drops 25% to $71.25 on Bitcoin Slide
MSTR•MicroStrategy’s flagship preferred stock STRC plunged to a record low of $71.25 before rebounding to $75.30, marking a 25% decline from its engineered par price. Chief Executive Michael Saylor warned that market volatility tests capital structures as Bitcoin trades near $60,000, intensifying scrutiny on dividend obligations and cash reserves.
1. Preferred Stock Performance
STRC fell to a new low of $71.25 at market open before settling at $75.30, representing a 25% decline from its engineered par of $100 and a 0.5% drop on the day as investors reacted to Bitcoin price weakness.
2. Saylor’s Capital Structure Remarks
Michael Saylor stated that market volatility tests capital structures while emphasizing continued disciplined capital allocation, credit quality and long-term value creation focused on Bitcoin.
3. Bitcoin Price Pressure
Bitcoin slid below $60,000 and hovered around $60,130 after a 5% weekly drop and a recent 21-month low of $58,188, driven by ETF outflows and a looming $10.6 billion options expiry.
4. Cash Reserves and Funding Concerns
MicroStrategy issued over $10 billion of STRC since early 2026, reducing its cash reserves from $2.25 billion in January to a thinner cushion, intensifying questions about its ability to cover recurring dividend obligations without liquidating Bitcoin.
