Strategy’s STRC preferred stock hits a record low below par
The slide has paused the above-par share sales Strategy uses to fund bitcoin purchases, and it is the same stock whose dividends forced the company’s first BTC sale this month.
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Summary
- Strategy’s key funding vehicle, its STRC preferred stock, has fallen to a record low of $89, weakening a major channel the company uses to raise cash to buy bitcoin.
- Because STRC now trades below its $100 par value, Strategy has paused issuing new shares through its at-the-market program, limiting its ability to keep adding to its bitcoin holdings.
- The drop in STRC comes after Strategy sold bitcoin for the first time to fund preferred dividends.
