Strategy’s "Stretch" preferred stock (STRC), designed to pay a high dividend while maintaining a stable price around $100, is trading below $90 on Wednesday afternoon. The stock hit a daily low of $88.50, its lowest price in at least 52 weeks, and closed the day at $89, according to Yahoo Finance.
STRC, or the Variable Rate Series A Perpetual Stretch Preferred Stock, is a bitcoin-backed equity issued by Strategy, the fintech firm that turned into a bitcoin-buying behemoth under Chairman Michael Saylor’s stewardship.
Strategy issued the stock in July 2025 as part of a suite of assets created to raise funds and bolster its bitcoin acquisitions. Stretch is typically Strategy’s most liquid and actively traded preferred stock, with $417.5 million in volume today, according to Strategy’s website.
The stock acts like a high-yield digital credit, currently paying a 12.9% effective rate doled out as a cash dividend to holders semi-monthly. It was designed to maintain a stable price of around $100 through monthly rate adjustments.
When above par, Strategy issues new shares to buy bitcoin. The company has paused that at-the-money program while STRC trades at a discount.
Although STRC has traded below par in the past, Wednesday's $89 appears to be the lowest non-adjusted daily close on record, and among the few times the stock has traded below its initial public offering price of $90, according to STRC.live. According to some market watchers, the stock tends to dip during periods of bitcoin volatility.
Bitcoin has held around $65,000 in recent days, leading up to new Federal Reserve Chair Kevin Warsh’s first Federal Open Market Committee meeting. On Wednesday, the Fed voted to keep interest rates steady.
Of note, SATA, the preferred stock Strive created to mirror Strategy's STRC, is trading above $99 on Wednesday, and offering 13.69% rate
Stretch is senior to Strategy’s other preferred stocks "Stride" (STRD) and "Strike" (STRK) and its common MSTR, but junior to "Strife" (STRF) (and debt). Those other preferred stocks pay fixed dividends, typically lower than STRC.
Saylor described Stretch’s launch as the company’s "iPhone moment."
Notably, in late May, Strategy sold 32 BTC for about $2.5 million to fund distributions on STRC, the first time it has liquidated BTC since it began accumulating in 2022. Analysts, including Benchmark and TD Cowen, have rebutted fears that these sales and general market weakness would lead to a "death spiral" for Strategy.
MSTR is trading at $116.52, down about 5% around market close, according to The Block’s price page.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
