Strategy’s Preferred Credit Drops to $82.53 on $941 Million Volume
STRC•STRC plunged to $82.53 on $941 million volume, its fourth-largest trading day, while SATA dipped to $92.88 on $153 million. CEO Matt Cole said leverage liquidations, not credit deterioration, drove the selloff as STRC’s 13% dividend form closed below its $90 IPO, sparking sustainability worries.
1. Price Plunge and Trading Volume
STRC fell to a low of $82.53 before closing at $88.59, marking its weakest level since its July 2025 IPO. Trading volume surged to $941 million, its fourth-largest ever, while sibling instrument SATA saw $153 million in volume and dipped to $92.88.
2. Leverage Liquidation Explanation
CEO Matt Cole attributed the selloff to a leverage liquidation event rather than any deterioration in underlying credit quality. He explained that investors borrowing against preferred shares amplifies returns until margin calls force unwinds, driving drastic price drops.
3. Dividend Sustainability Issues
STRC’s 13% dividend, structured for twice-monthly payouts, has come under scrutiny as Strategy sold 32 Bitcoin in late May to fund distributions. The preferred shares closing below their $90 IPO price for the first time has intensified concerns over the dividend’s long-term viability.
