MicroStrategy's STRC stock plunges 25% below par, raising investor alarms

MicroStrategy’s STRC preferred stock has fallen sharply below its $100 par value. The shares recently hit an intraday low of $82.53, marking their steepest drop since the stock launched in July 2025. Income-focused investors are now growing concerned over the decline. STRC is a Nasdaq-listed perpetual preferred stock with a stated par value of $100. It initially offered a 9% annual dividend, but this rate has since risen seven times to 11.50% by June 2026. With 104.89 million shares outstanding, MicroStrategy now owes around $1.2 billion each year to sustain these payouts.

The stock has since dropped to $76.20, roughly 25% below par. Unlike Terra LUNA, Michael Saylor faces no forced liquidation if STRC falls further, as dividends remain legally discretionary. However, the company currently holds only $1.4 billion in USD reserves to cover its obligations. A prolonged discount on STRC could reduce demand for MicroStrategy’s common stock over time. This may slow the company’s pace of Bitcoin accumulation. The situation reflects growing pressure on the firm’s financial commitments.