Saylor pushes back as Strategy's STRC sets another record low

STRC hits fresh lows as Bitcoin slides

@Strategy's preferred stock $STRC fell to a record low of $71.25 before recovering to near $75, placing it roughly 25% below the $100 par value it was designed to hold. The slide comes as Bloomberg reported that investors are increasingly questioning whether Strategy's financing model can keep running, with Bitcoin now trading firmly below $60,000.

@saylor responded to the pressure publicly, posting that "volatility tests every capital structure," stressing discipline, credit quality, and resolve. The $MSTR common edged slightly higher on the day, even as the preferred stock remained under severe pressure.

CryptoQuant has flagged a sharp deterioration in Strategy's balance sheet metrics. According to CoinDesk, Strategy's annualized dividend obligations have nearly quadrupled to $1.2 billion since the start of 2026, while its U.S. dollar cash reserve has fallen 38% over the same period. That combination has collapsed dividend coverage from more than seven years to roughly 14 months.

Funding machine under scrutiny

When $STRC trades above its $100 par, Strategy issues new shares through an at-the-market program and uses the proceeds to buy Bitcoin. With the stock now well below par, that funding channel has effectively closed.

Strategy holds 847,363 BTC, per a June 22 update. With Bitcoin trading around $60,000, the company's holdings are deeply underwater relative to their average acquisition cost. CryptoQuant's head of research warned that selling Bitcoin to rebuild cash reserves would not be a good option, noting that "any forced Bitcoin sale at current prices would crystallize these losses at scale and destroy shareholder value."

Equities firm Benchmark, however, reiterated its Buy rating and $570 price target on Strategy, arguing that the recent declines in $MSTR and $STRC represent more of a stress test of the company's funding model than evidence of a structural breakdown. Strategy itself has stated that its Bitcoin reserve provides 32 years of dividend coverage at current rates.

One complication is that Strategy cannot simply suspend STRC dividend payments to preserve cash. The dividends are cumulative, meaning any skipped payment must be made up later, and halting them would damage the company's credibility with preferred holders.

Sources:
The Block: Bitcoin rout leads Strategy's STRC to slide 26% below par
CoinDesk: CryptoQuant says Strategy should pause Bitcoin buying and rebuild cash
Bloomberg: Michael Saylor's Bitcoin Financing Approach Faces Investor Scrutiny