Strategy Halts Bitcoin Funding as STRC Plunges Below Par

Strategy’s preferred stock STRC has fallen well below its $100 par value, forcing the company to suspend the at-the-market (ATM) issuance program it used to raise cash for Bitcoin purchases. STRC hit an intraday low of $82.50 before closing at $88.59 on June 18, according to The Block. It finished below $90 for the second straight session – its longest losing streak since listing.

The stock is a floating-rate perpetual preferred issue that pays a dividend yield of about 12.9%. It was designed to trade near par, allowing Strategy to drip new shares into the market via its ATM program and funnel the proceeds into Bitcoin. With STRC now trading far below face value, that mechanism is switched off. Trading volume surged to roughly 10.7 million shares, about three times the typical daily average of 3.4–3.5 million.

Market participants view the halt as effectively shutting off one of Strategy’s key Bitcoin funding taps. The company has relied heavily on STRC issuance alongside convertible debt and cash reserves to accumulate its massive BTC hoard. Without the ATM program, near-term purchasing capacity shrinks.

TD Cowen nevertheless maintained its buy rating on Strategy. The firm cited a recent investor meeting with Chief Financial Officer Andrew Kang, who outlined a long-term playbook: dividend payments, cash reserves, convertible debt management, and even Bitcoin sales if necessary – all in service of maximizing Bitcoin value per share.

Strategy’s common stock, MSTR, fell 4% to close at $112.53, reflecting the broader bearish sentiment around the company’s funding constraints. The next key watchpoint is whether STRC can rebound toward par – or whether Strategy pivots to other capital-raising tools to keep adding to its Bitcoin stack.