Strategy's STRC preferred stock fell to $91.79, its third-lowest since listing, as bitcoin weakness and dividend coverage worries drive a record $8.20 discount to rival SATA.
Alpha Score of 23 reflects poor overall profile with poor momentum, weak quality, moderate sentiment. Based on 3 of 4 signals – score is capped at 90 until remaining data ingests.
Strategy's (MSTR) preferred stock STRC closed at $91.79 on Tuesday, its third-lowest since trading began in July 2025. The only lower closes came two sessions later that month, when the security fell to as low as $88.60.
The stock was initially priced near $90 in its debut. It was designed to trade close to its $100 par value. STRC has not hit $100 since May 15, last month's ex-dividend date. Historically, the stock would recover toward par after the dividend cutoff. This month it never did.
Several forces are weighing on STRC. Bitcoin prices remain under pressure, hovering around $65,000, roughly 50% below the October all-time high. The security has historically moved in lockstep with bitcoin.
Dividend coverage is also a concern. Strategy has about seven months of dividend payout left after using part of its cash reserves to repay $1.5 billion of convertible debt. Before that repayment, the company's cash position covered up to 24 months of dividends, according to company filings.
At the same time, investors are shifting to a competing product from Strive (ASST). Strive's bitcoin-backed preferred security, SATA, continues to trade near its $100 par value. SATA offers an annualized yield of roughly 13%, compared with STRC's 11.5%. SATA also pays daily dividends rather than bi-monthly. And Strive carries no debt, so SATA sits at the top of the capital structure, not obligated to convertible debt holders.
The spread between the two securities has widened to a record. STRC trades at a roughly $8.20 discount to SATA, which stands at $99.99.
Based on STRC's current dividend rate and market price, its annualized yield is approximately 12.53%. The gap to par suggests the market is pricing in a need for about 100 basis points of additional yield to restore demand.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.