Strategy’s Stretch preferred stock plunged to its lowest price on record Thursday as the accelerating Bitcoin selloff placed fresh pressure on the company’s capital structure.
STRC dropped to an intraday low of $73.65 before recovering to around $79. The preferred stock fell nearly 9% at its lowest point Thursday and traded more than 25% below its $100 par value.
Bitcoin briefly fell to $58,189, its lowest level of the year, before recovering toward $59,600. Strategy’s common stock also dropped below $90, touching $86.72 and reaching its lowest level since early 2024.
STRC currently pays an annual dividend rate of 11.5% based on its $100 stated amount. At a market price of $79, that translates into an effective yield of roughly 14.6%. At Thursday’s low of $73.65, the effective yield briefly exceeded 15.6%.
Strategy has not yet increased the official dividend rate. The higher effective yield is produced by the decline in STRC’s market price.
