Image credit: Strategy
Key Takeaways
- STRC closed at $91.79, its third-lowest price since trading began in July 2025, and has not recovered to its $100 par value since mid-May.
- Strategy’s dividend coverage has fallen from 24 months to approximately 7 months after using cash reserves to repay $1.5 billion in convertible debt.
- Rival preferred stock SATA trades near par at $99.99, offers a higher 13% annualized yield, and carries no outstanding debt, widening the spread to a record $8.20 gap.
Strategy’s Bitcoin-backed preferred stock, STRC, closed at $91.79 on Tuesday, its third-lowest close since the security began trading in July 2025, as declining Bitcoin prices and shrinking dividend coverage push the stock further below its $100 par value, while Strive’s competing SATA preferred stock trades near par at a wider discount spread than ever recorded.
STRC Records Third-Lowest Close Since Launch
The only lower closes for STRC occurred during two sessions in July 2025, when the security fell as low as $88.60. The stock was initially priced at approximately $90 at debut and was designed to trade as close as possible to its $100 par value. STRC has not traded at that level since May 15, which was last month’s ex-dividend date.
Historically, STRC would trade near its $100 par value ahead of the ex-dividend date, the cutoff after which new buyers are no longer entitled to the upcoming dividend. Once the stock went ex-dividend, it typically declined by roughly the value of the dividend before gradually recovering toward par. On June 15, however, STRC did not reach par value.
Bitcoin Weakness and Reduced Cash Reserves Weigh on STRC
Two factors are contributing to STRC’s persistent weakness. Bitcoin remains under pressure, hovering around $65,000 and well below its all-time high, and since its launch, STRC has generally tracked Bitcoin price movements, according to data.
Separately, Strategy’s dividend coverage has narrowed materially. The company currently has approximately seven months of dividend payout remaining after using part of its cash reserves to repay $1.5 billion in convertible debt. Prior to that repayment, Strategy’s cash position provided up to 24 months of dividend coverage.
Strive’s SATA Draws Investors With Higher Yield and No Debt
Strive’s competing Bitcoin-backed preferred security, SATA, has drawn attention from investors as it continues to trade near its $100 par value while offering a higher annualized yield. SATA, issued by Strive (ASST), offers an annualized yield of approximately 13%, compared with STRC’s 11.5%, and pays daily dividends rather than semi-monthly distributions.
Unlike Strategy, Strive carries no outstanding debt, meaning SATA sits at the top of the capital structure and is not obligated to convertible debt holders. The spread between the two securities has widened to its largest gap on record, with STRC trading at an $8.20 discount to SATA, which closed at $99.99.
STRC Yield Rises to 12.53% as Gap to Par Value Widens
Based on STRC’s current dividend rate and market price, its annualized yield stands at approximately 12.53%, calculated as annual dividend payments divided by the current share price. That yield exceeds the security’s stated 11.5% rate, a gap that reflects the persistent discount at which STRC is trading relative to its $100 par value. STRC currently trades nearly 8% below that target and has not recovered to par since mid-May.
