Strategy’s STRC sinks to record low as Bitcoin selloff drags crypto market lower
Strategy’s Perpetual Stretch Preferred Stock, known as STRC, slid to its weakest level since its July 2025 debut.
STRC dropped to an intraday low of $90.40 on Friday, its lowest level since the preferred stock began trading in July 2025, before recovering to around $93.40 in afternoon trading.
The product is designed to trade near its $100 stated amount, with Strategy able to adjust the dividend rate each month to encourage the stock to return closer to par.
The decline raises pressure on Strategy’s financing model. STRC currently carries an 11.50% annualized dividend rate based on its $100 stated amount, but the rate is subject to monthly adjustments.
The pressure on STRC comes as Bitcoin briefly fell below $60,000 on Friday, reaching its lowest level since October 2024 before rebounding in the afternoon. Bitcoin was trading near $62,000 at press time, down roughly 3% over the past 24 hours.
The broader crypto market also remained under pressure, with total market capitalization falling about 3% on the day to roughly $2.2 trillion. The selloff pushed the overall crypto market cap to its lowest level since October 2024, mirroring Bitcoin’s decline.
The move triggered a sharp wave of forced selling across derivatives markets. About $1.72 billion in crypto liquidations occurred over 24 hours, including roughly $1.41 billion in long positions and $305 million in short positions, as leveraged traders were caught by the rapid move lower.
Strategy shares also extended their decline, falling to an intraday low near $114, their lowest level since February 2026, before recovering to around $120 in Friday afternoon trading.
The drop follows Strategy’s disclosure earlier this week that it sold 32 Bitcoin between May 26 and May 31 for about $2.5 million to fund preferred stock distributions, marking its first Bitcoin sale in years.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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