Strategy Inc’s STRC preferred stock, the variable-rate instrument designed to trade near its $100 par value, has fallen to roughly $85. That is a record low for the security, which launched less than a year ago at $90 per share and was supposed to hover around par thanks to a self-adjusting dividend mechanism.
What happened to STRC
STRC, formally known as the Variable Rate Series A Perpetual Stretch Preferred Stock, debuted in late July 2025. Strategy sold over 28 million shares at $90 each, raising capital to fund what the company does best: buy Bitcoin and tell everyone about it.
The product’s core selling point was a variable dividend rate that adjusts monthly. If the stock drifts below par, the dividend ticks up to lure buyers back. If it trades above par, the rate falls.
The dividend started at 9% annualized. It has since climbed to 11.50% annualized as of June 2026. At a trading price around $86, that 11.50% rate on a $100 par translates to an effective yield of roughly 13.33%.
