MicroStrategy STRC Falls Below $95 as Bitcoin Drops

MicroStrategy’s variable-rate preferred stock STRC closed at $94.65 on June 3, 2026 after falling more than 2% that day. The drop coincided with Bitcoin trading near $62,000 and roughly $1.66 billion in liquidations across derivatives platforms. MicroStrategy sold a modest amount of Bitcoin to help fund preferred dividends.

STRC is the company’s Variable Rate Series A Perpetual Stretch Preferred Stock. It was issued with a $100 par value and targets an annualized yield of about 11.5%. The dividend rate can adjust higher when the preferred’s market price falls, a mechanism intended to push the price back toward par over time.

The recent price decline took STRC below a range where it had traded stably for months. When STRC trades below par, issuing new preferred shares becomes less attractive because investors demand higher yields. Higher dividend payouts increase the company’s cash outflows and can make funding through new share issuances less efficient.

Trader Scott Melker wrote on social media: “STRC’s $100 par value is not a price floor. A 5% discount to par is not evidence that something is broken. It’s evidence that investors are demanding a higher yield, pricing risk, or reacting to market conditions — exactly what preferred stocks do.” Critic Peter Schiff wrote on social media: “The lower the price falls, the higher MSTR will have to increase the dividend to bring the share price back up to $100. That means MSTR will run out of cash much sooner, pulling forward Bitcoin sales to fund payments.”

MicroStrategy held more than 843,700 BTC and retained substantial cash on its balance sheet as of the recent filing. The company’s common shares also experienced selling pressure in the same period. For investors focused on income, STRC’s discount increases the effective yield to about 12%, while creating mark-to-market losses and uncertainty over dividend sustainability if Bitcoin prices remain weak.

Shareholders face a vote on June 7, 2026 on a proposal to change STRC dividend payments from monthly to semi-monthly while keeping the annualized 11.5% rate unchanged. MicroStrategy says the change would reduce timing gaps in payments and provide steadier cash flows for preferred holders. The vote comes days after STRC hit a multi-month low and while Bitcoin remains under pressure.

Market participants are watching how the preferred trades and how holders vote, given that STRC issuance at or above par has been a key funding channel in MicroStrategy’s Bitcoin acquisition strategy.