Strategy’s Perpetual Stretch Preferred Stock, known as STRC, slid to its weakest level since its July 2025 debut.
STRC dropped to an intraday low of $90.40 on Friday, its lowest level since the preferred stock began trading in July 2025, before recovering to around $93.40 in afternoon trading, according to Yahoo Finance data.
The product is designed to trade near its $100 stated amount, with Strategy able to adjust the dividend rate each month to encourage the stock to return closer to par.
The decline raises pressure on Strategy’s financing model. STRC currently carries an 11.50% annualized dividend rate based on its $100 stated amount, but the rate is subject to monthly adjustments.
Investor’s Business Daily reported that the latest drop could push the dividend rate to at least 11.75%, increasing Strategy’s annual financing costs by roughly $26 million on its $10.5 billion STRC issuance.
