In the past five weeks, the preferred equity STRC, issued by the bitcoin treasury company Strategy (MSTR), has experienced a significant decline, dropping below its par value of $100. For the first time since its launch in July 2025, STRC fell under $83, raising concerns about its market performance. This drop is noteworthy, given STRC’s target dividend yield of 11.5%. The period also witnessed fluctuations in bitcoin prices, impacting STRC’s value alongside changes in capital structure.
Explore the impact of Strategy’s bitcoin purchases amid price dips.
STRC is structured as a dividend-paying preferred equity with a stated target annualized payout of 11.5%, distributed on a semi-monthly dividend schedule. The security went ex-dividend on May 14, when STRC closed at $100 and bitcoin was trading above $80,000. On May 15, Strive Asset Management (ASST) announced it would pay dividends on its competing security SATA at a 13% yield, increasing pressure on STRC.
The co-existence of STRC’s stated 11.5% payout target and SATA’s announced 13% yield framed the dividend-competition backdrop in mid-May. Bitcoin price levels above $80,000 at the May 14 ex-dividend date were part of that market context.
STRC is structured as a dividend-paying preferred equity with a stated target annualized payout of 11.5%, distributed on a semi-monthly schedule. The security went ex-dividend on May 14, when STRC closed at $100 and bitcoin was trading above $80,000 that day. STRC’s payout target and the timing of the ex-dividend were part of the mid-May market timeline. On May 15, Strive Asset Management announced it would pay dividends on its competing security SATA at a 13% yield, a development that increased competitive pressure on STRC. The proximity of SATA’s announced yield to STRC’s stated payout framed the dividend-competition backdrop in mid-May.
This summary consolidates the core facts about STRC’s dividend mechanics and the contemporaneous competing yield announcement. The dates and rates noted above are steps in the sequence of market and capital-structure events described in the article. These items establish the immediate dividend and yield context for subsequent sections.
STRC, a dividend-paying preferred equity with a $100 par value, fell below $83 — its lowest level since it debuted in July 2025 — over a five-week period that included falling bitcoin prices and market movements. Strategy announced on May 15 the repurchase of $1.5 billion of its 2029 convertible notes at an 8% discount, and by May 26 the dollar cash reserve established at end-2025 was used to finance the repurchase, reducing the reserve to about $871 million and shrinking STRC’s dividend-coverage plan from about 24 months to roughly six months. During the same timeframe Strategy bought 24,869 BTC on May 18 as bitcoin fell toward $76,000 and sold 32 BTC on June 1.
