STRC plunged overnight, hitting a low of $82.7 before recovering to close at $88.8.

On June 19, Bitget market data shows that the Stretch variable-rate perpetual preferred stock (ticker: STRC) issued by Strategy plc plummeted to a recent low overnight, hitting a nadir of $82.7 and closing at $88.8 today. According to reports, STRC is a preferred stock Strategy offered to raise capital for Bitcoin purchases, with a face value roughly pegged at $100 and a high dividend. Its dividend rate adjusts based on price movements, aiming to keep the trading price as close to the face value as possible. The significant de-pegging of STRC signals the market is demanding a higher yield, and also reflects eroding investor confidence in Strategy’s creditworthiness and dividend stability. Historically, Strategy has relied heavily on STRC issuances to fund its Bitcoin buys; when STRC trades below face value, issuing new shares is no longer cost-efficient—equivalent to borrowing at a higher interest rate. As a result, the firm’s ability to continue acquiring Bitcoin will be weakened.