Strategy Preferred Shares Plunge 18%, Issuance Program Paused
STRC•STRC•STRC•STRC•STRC preferred shares plunged 18% below their $100 par value, prompting Strategy to pause its share issuance program that funds new Bitcoin acquisitions. The 12% variable-yield vehicle now faces unwinding of leveraged positions and reduced capacity to expand its BTC holdings.
On June 19, STRC preferred shares fell 18% below their $100 par value, hitting distress levels that forced Strategy to suspend its market share issuance program used to fund Bitcoin purchases.
The digital credit structure relies on selling preferred shares at or above par to buy more Bitcoin, but with yields near 12% and competing high-yield treasury products, leveraged STRC positions are unwinding and demand has collapsed.
Strategy holds enough cash to cover dividend payments for at least seven months and maintains Bitcoin reserves capable of funding distributions for years, though a small BTC sale in late May spurred fears about the model’s resilience during prolonged market stress.
