- Strategy’s STRC hit a record low near $71 as Bitcoin briefly fell below $60,000, increasing pressure on the company’s funding strategy.
- The decline in STRC makes it harder for Strategy to raise capital through new share sales, potentially slowing its Bitcoin accumulation plans.
- CryptoQuant warned that Strategy may need to rebuild its cash reserves and reduce Bitcoin purchases as dividend obligations continue to rise.
The decline in the plan’s preferred stock, STRC, to a new all-time low has sparked new worries about the company’s capacity to sustain its aggressive Bitcoin acquisition plan. The drop coincides with Bitcoin momentarily falling below $60,000, increasing pressure on the cryptocurrency market and Strategy’s financial objectives.
STRC refers to Strategy Inc. is the world’s first and largest Bitcoin treasury company, fell to over $71 during early trading before slightly rising to about $74.33. Strategy’s perpetual preferred stock, or STRC, was introduced to provide investors with a fixed monthly dividend while assisting the company in raising funds to purchase further Bitcoin. The stock is still far below its target value of $100 even after the rally. Simultaneously, Strategy’s common stock (MSTR) continued to decline, hitting its lowest point since February 2024.
Source: https://www.strategy.com/strc
The significant drop is significant since STRC is important for Strategy’s ability to obtain capital to purchase additional Bitcoin. With an annual dividend rate of 11.5%, the corporation introduced the preferred stock in July 2025 with the goal of maintaining its value near $100 while providing investors with a consistent monthly income.
Since then, STRC has assisted Strategy in raising billions of dollars, which helped the business to buy an additional 127,000 Bitcoin. That method is becoming more challenging, though, due to the recent decline in the stock price.
Strategy’s Bitcoin Funding Model Faces Fresh Pressure
Strategy would make less money when issuing additional shares since STRC is currently trading far below its target price. To put it simply, in order to raise the same amount of money, the corporation needs to sell more shares than it did previously. If market circumstances continue to be poor, this could impede its intentions to purchase Bitcoin.
The stock’s effective yield has also increased due to the declining share price. The growing yield also signals growing concerns about the company’s financial vulnerability, even though investors purchasing STRC at lower prices may benefit from larger returns.
The rising expense of dividend distributions presents another difficulty. With the expansion of its preferred stock issuance, Strategy’s yearly dividend payments have increased to around $1.2 billion. Only roughly ten months’ worth of these payments can be covered by the company’s present cash reserves, according to data.
CryptoQuant Warns Strategy To Rebuild Cash Before Buying More BTC
Strategy may need to reduce its Bitcoin purchases and concentrate on restoring cash reserves before taking on new financial obligations, according to a recent statement from the cryptocurrency analytics company CryptoQuant.
Strategy’s recent Bitcoin purchases are functioning more like a liquidity drain than a significant driver of Bitcoin prices, according to Julio Moreno, Head of Research at CryptoQuant. Additionally, he said that the company’s dividend coverage has drastically decreased, putting more strain on its finances.
In order to pay for obligations related to STRC, Strategy even sold 32 Bitcoin valued at roughly $2.5 million earlier this year. It was the company’s first Bitcoin sale since 2022, despite the fact that it only made up a minor portion of its holdings.
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