Strategy Preferred Stock STRC Slumps Under $90 as Trading Volume Explodes
Strategy’s preferred stock, ticker symbol STRC, faced significant selling pressure on Thursday. The stock continued to slide after hitting its lowest closing price on Wednesday. During a highly volatile intraday session, the stock dipped to a low of $82.50 before stabilizing to close at $88.59.
This downturn marks the longest stretch the stock has spent below $90 since its initial public offering back in July 2025.
Massive Volume Surge and Structural Mechanics
Trading activity for the Variable Rate Series A Perpetual Stretch Preferred Stock reached historic highs during the drop. Investors exchanged roughly 10.7 million shares on Thursday. This figure represents a massive spike compared to the asset’s typical daily average volume of 3.4 million to 3.5 million shares.
Structurally, STRC is engineered to trade around a par value of $100. To achieve this, it offers a variable monthly dividend that currently sits at 12.9%.
When market demand pushes STRC above par, Strategy issues new shares to fund Bitcoin purchases. However, because the stock is currently trading under par value, the company has officially paused its At-The-Market (ATM) stock issuance program.
TD Cowen Defends Strategy's Capital Market Evolution
Despite the temporary weakness in the preferred shares, institutional analysts remain bullish on the parent company. TD Cowen published a research note on Thursday reiterating a “Buy” rating on Strategy’s common stock (MSTR). The investment bank maintained an ambitious $400 price target, even as MSTR shares dropped 4% to close at $112.53.
Analysts view the company as expanding beyond a simple Bitcoin proxy. Instead, Strategy is maturing into a full-scale Bitcoin capital markets platform.
According to meetings with CFO Andrew Kang, the company is focusing on a holistic corporate framework. This balanced approach manages dividend obligations, USD reserves, and credit perception to maximize long-term Bitcoin holdings per share. Over the short term, Strategy will likely focus on rebuilding its cash reserves and supporting preferred stock stability rather than buying more Bitcoin.
