Strategy’s preferred stock STRC closed at $89 on June 17, marking the security’s worst day since it launched in July 2025. Trading volume surged to roughly 10.7 million shares.
How the “Stretch” mechanism broke down
Here’s the thing about STRC, which Strategy branded as “Stretch” when it debuted. The security was engineered with a variable dividend rate that adjusts monthly, calibrated to keep the trading price anchored around $100. The current annualized dividend rate sits at 11.50%, paid semi-monthly.
With STRC trading at $89, the effective yield has climbed above 12.9%. The price decline has triggered a concrete operational consequence: Strategy has paused its at-the-market issuance program for STRC, the mechanism through which it was selling new preferred shares into the open market to raise capital for Bitcoin purchases. Selling shares below par would be dilutive and self-defeating, so the ATM spigot is off.
The Bitcoin sale heard around the world
