Strategy’s STRC Preferred Stock Slides as Bitcoin Weakens While Strive Gains Investor Attention

Strategy’s perpetual preferred security, STRC, fell to as low as $97.11 on Thursday as Bitcoin declined toward the $73,000 level. The drop highlights the ongoing relationship between Bitcoin price movements and investor sentiment toward Strategy’s preferred shares.

Historically, STRC has experienced selling pressure during Bitcoin pullbacks and shortly after its ex-dividend dates. Similar price action was observed following previous ex-dividend events, including those in November and February. Ex-dividend adjustments typically reduce a stock’s price by the value of the dividend, while weaker Bitcoin performance can further dampen demand for securities tied to the company’s Bitcoin-focused strategy.

Strategy has designed STRC to trade close to its $100 par value. Maintaining that level is important because it allows the company to continue utilizing its at-the-market (ATM) program, giving it greater flexibility to issue shares and raise capital efficiently.

The company recently repurchased $1.5 billion of its 0% convertible senior notes due in 2029, lowering its overall debt obligations. However, the transaction was financed using cash from Strategy’s U.S. dollar reserves. As a result, cash holdings fell from approximately $2.25 billion to about $871 million.

Based on annual preferred dividend commitments estimated at roughly $1.7 billion, the remaining cash reserve now covers only around six months of dividend payments. The reserve had originally been structured to provide coverage for approximately two years.

Executive Chairman Michael Saylor recently outlined several funding options available to support dividend payments and strengthen the balance sheet. Potential sources include selling Bitcoin, issuing additional MSTR shares when the stock trades above a favorable premium to net asset value (NAV), and raising capital through additional STRC offerings. Saylor noted that management evaluates capital allocation decisions based on their impact on Bitcoin per share and long-term shareholder value.

Meanwhile, competitor Strive Asset Management has attracted investor interest with its perpetual preferred security, SATA. The company announced a daily dividend payment structure, and SATA has remained close to its $100 par value while offering a yield near 13%, even during recent Bitcoin market weakness.

Strive has also eliminated debt inherited through its acquisition of Semler Scientific, creating a cleaner balance sheet. Investors appear to be rewarding this approach. Over the last three months, Strive shares have surged approximately 110%, significantly outperforming MSTR’s 12% gain and Bitcoin’s 8% increase. The performance gap suggests that markets may favor higher-yielding preferred securities and stronger balance sheet management as competition among Bitcoin treasury companies intensifies in 2026.