Strategy's STRC preferred stock hit $88.51 on Wednesday, its lowest level since the stock's listing, before closing at $89. This 11% discount to the $100 par value comes with higher put volume than calls on the June 18 expiry contracts. Will Michael Saylor's main bitcoin financing vehicle withstand market pressure?
In brief
- STRC closes at $89 on June 18, 2026, 11% below its par value of $100.
- The put/call ratio reached 1.13, with 8,951 put contracts versus 7,906 call contracts as of June 18 expiration.
- An annual dividend of around $13 would be needed to bring the stock back to par value according to Bitwise Europe.
Why is STRC collapsing so quickly?
STRC has been structured to stay around $100 through monthly dividend adjustments. Yet the stock is down nearly 10.7% since the start of the year, a signal that investors are now demanding a higher yield to hold on to the stock.
THE options data of June 18 reveal a clear bearish concentration. Open interest on puts reached 1,912 contracts at a strike price of $60 and 1,230 contracts at $80. The net gamma exposure is -$1.1 million per 1% change, which can mechanically amplify declines if market makers adjust their hedges.
Andre Dragosch, head of research at Bitwise Europe, estimates that an annual dividend of around $13 would be necessary to return STRC to its par value under current rate conditions. However, increasing this dividend increases Strategy's cash obligations, with no guarantee of restarting the share issuance process.
Does Strategy's capital structure stand up to scrutiny?
Strategy holds 846,842 bitcoinsvalued at around $54.2 billion. Last November, it announced 71 years of dividend coverage. Since then, bitcoin has lost a significant part of its value compared to this calculation, and the estimated horizon has mechanically contracted.
The market no longer only looks at the value of assets. He scrutinizes their liquidity. Preferential dividends are paid in cash, not in BTC. JA Maartunn, analyst at CryptoQuant, warns that any sale of bitcoin to finance these payments would weigh on the price of BTC, in turn reducing the value of reserves, in a downward spiral.
Quinn Thompson, chief investment officer of Lekker Capital, points out that the weakness goes beyond STRC alone. It’s the company’s overall financing model that investors are re-evaluating. Strategy nevertheless continued its purchases in early June, investing $100 million for 1,587 BTC, financed via sales of MSTR shares. Saylor remains faithful to his model, even under duress.
In short, the decline in STRC reflects three simultaneous tensions: rates which make the security less attractive compared to bonds, doubts about the real liquidity of Strategy's bitcoin reserves, and a market which calls into question the sustainability of Saylor's model. For STRC to return to $100, it would require either a raised dividend, a relaxation of rates, or a significant rebound in bitcoin. The window closes.
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