- STRC’s price dip followed standard ex-dividend mechanics, not a sudden loss of confidence.
- The preferred stock still offers an 11% yield, supporting demand on pullbacks.
- Proceeds from STRC issuance continue to fund Strategy’s bitcoin accumulation.
Strategy (formerly MicroStrategy), the world’s largest corporate holder of itcoin, saw one of its newest financing tools briefly trade below its stated value this week. The company’s Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, slipped under the $100 mark in pre-market trading following its latest monthly dividend payment.
At first glance, the move raised eyebrows. But market participants say the dip largely reflects standard ex-dividend mechanics rather than a sudden shift in confidence toward Strategy’s bitcoin-focused treasury strategy.
Why STRC Fell Below $100
STRC began trading ex-dividend after the payout, meaning new buyers are no longer entitled to the most recent dividend. In fixed-income-like instruments such as preferred shares, prices often adjust downward to reflect that cash distribution.
Historically, STRC has shown similar behavior. Past ex-dividend dates have triggered modest price declines—often around 2%—followed by recoveries toward par. In a few instances, including August and November, the stock fell more sharply, dropping more than 6% amid broader market volatility before rebounding weeks later.
This time, the move appears more measured, aligning with the routine pattern rather than signaling stress in the structure.
An 11% Yield Still Driving Demand
Despite the short-term price dip, STRC continues to offer an annualized yield of roughly 11% on its $100 stated value—an eye-catching return in today’s market. That yield remains a central reason investors are willing to step in during pullbacks.
Recent trading data suggests strong participation. Analysts estimate that roughly 40% of recent volume has come from at-the-market issuance, implying that proceeds from STRC sales may have helped Strategy acquire approximately 2,280 bitcoin over a three-day window earlier this week.
For bullish investors, the thesis is straightforward: quick recoveries back toward $100, combined with sustained volume on dips, point to healthy demand for high-yield exposure tied indirectly to bitcoin accumulation.
Risks If Prices Stay Below Par
The bearish scenario is less about a single ex-dividend drop and more about duration. If STRC were to remain below $99 for an extended period—as seen in November—it could pressure Strategy to raise rates more aggressively on future issuance to attract buyers. Continued supply at discounted prices could also weigh on sentiment.
That said, past episodes suggest that recoveries are possible once volatility fades, especially if bitcoin prices remain resilient and Strategy continues to communicate a clear capital allocation strategy.
Also Read: Arthur Hayes Predicts Bitcoin Boom in 2026 — Here’s the Liquidity Trigger
STRC has become an important lever in Strategy’s ongoing effort to accumulate bitcoin without selling its existing holdings. Short-term price fluctuations are part of that process. For now, the latest dip looks less like a warning sign and more like a reminder of how dividend mechanics intersect with an unconventional, bitcoin-centric corporate strategy.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
