MicroStrategy STRC Drops to Near $90 as Bitcoin Slides

MicroStrategy’s STRC preferred stock fell to near $90 after Bitcoin slipped below $63,000. The decline came as shareholders approved a change to semi-monthly dividend payments for the preferred.

STRC is MicroStrategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, issued to help fund Bitcoin purchases. The security pays an 11.5% annual dividend, unchanged for a fourth month, and includes a rate-reset feature intended to draw buyers when the price drops below the $100 par.

STRC fell below $95 on June 3 for the first time in three months, closing at $94.65 as Bitcoin traded near $62,000 and liquidations exceeded $1.6 billion. By June 8 the preferred traded around $93 after an intraday low near $90.

MicroStrategy typically issues new STRC only when shares trade at or above par and has paused sales when the discount widened. The company used STRC issuance this year to fund roughly 77,000 BTC purchases, a total larger than net buys by U.S. spot Bitcoin ETFs so far this year.

As of June 9 MicroStrategy held 845,256 BTC and kept about $1 billion in cash reserved for dividends and debt service. STRC’s price has closely tracked Bitcoin’s price swings given that balance sheet and the company’s Bitcoin activity.

Shareholders approved the semi-monthly schedule at a recent meeting. MicroStrategy said the schedule will cover STRC dividends from operating cash, reduce volatility by tightening trading around par, and speed reinvestment. The change has a June 30 record date and a July 15 payment.

Technical analyst Michaël van de Poppe wrote, “Bitcoin is stalling beneath $65K,” noting a decisive break above $65,000 could open a run to $72,000–$74,000. Economist Peter Schiff argued the discount reflects the STRC funding model, adding, “STRC may not go back to par unless MSTR raises the dividend. That may not happen.”

The first semi-monthly payment is set for July 15, with the June 30 record date.