On June 25, MicroStrategy Inc. Perpetual Stretch Preferred (STRC) declined 8.57% in regular trading, falling to $77.12 per share — a fresh all-time low well below its $100 par value — with turnover of $296 million.

The decline was driven by a confluence of negative catalysts. Strategy filed with the SEC to issue up to $21 billion in new variable rate Series A perpetual preferred stock, raising significant dilution concerns among existing STRC holders. Simultaneously, analysts publicly urged the company to halt Bitcoin purchases and prioritize rebuilding its cash reserves, noting that the recent $1.5 billion repurchase of convertible notes severely weakened the cash buffer available to support STRC dividends.

STRC has traded persistently below par since mid-May, with its effective yield now exceeding 13% based on current prices versus the 11.5% stated rate. The stock had already hit $82.53 earlier this week before extending losses. Market participants are questioning whether Strategy can sustain its financing-to-Bitcoin acquisition model, with the company now carrying approximately $11 billion in unrealized losses on its Bitcoin holdings. The announcement of a massive new preferred issuance compounds fears that the existing STRC structure faces mounting payment sustainability risks.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)