Strategy Stock Under Pressure: Why Preferred Stock’s Record Low Raises New Doubts About Saylor’s Bitcoin Strategy

• Strategy preferred stock STRC falls to all-time low
• Higher risk premiums could become a problem for companies
• Peter Schiff warns of cracks in Strategy’s Bitcoin financing

For Michael Saylor and his company Strategy, known as Bitcoin HODLers, the strategy of the past few years has been very simple: capital is raised by issuing bonds and preferred shares, which is then invested in Bitcoin. As long as the Bitcoin price rises and the capital markets have confidence in this model, there will be a self-reinforcing effect in favor of shareholders. But it is precisely this trust that currently appears to be showing clear cracks.

Preferred shares at all-time low: Cracks in the Bitcoin financing construct are becoming visible

Yesterday, Thursday, the strategy preferred share STRC on the NASDAQ reached a new all-time low of $82.53 during trading. At the end of trading, the paper stood at $88.59. This means that the share certificate is trading well below its nominal value of 100 US dollars, at which the design was originally aimed. At the same time, Strategy’s common shares (MSTR) also came under pressure and ultimately lost 3.46 percent to $112.53 on the NASDAQ. They continued the already weak price development of the past few months, as they had already fallen by around 26 percent since the beginning of the year.

The price losses hit Strategy at an inopportune time. The group is more dependent than any other listed company on investors’ trust in Bitcoin and its own capital market strategy. However, falling prices for financing instruments make it more difficult to obtain further fresh capital. Accordingly, Strategy has stopped the sale of preferred shares for the time being, reports “boerse-express”. This means that no further Bitcoin purchases are likely to be made for the time being, as there is a lack of fresh financial resources for them.

Peter Schiff sees himself confirmed

The well-known Bitcoin critic Peter Schiff commented particularly loudly on the development. On Platform

$STRC is collapsing. Today’s low is $85.32. At that price the yield is 13.5%. That means to get the share price back up to $100, to make earlier investors whole and to issue new shares, $MSTR needs to raise the yield to 13.5%. That means the $85.32 buyers get a yield of 17.5%.

– Peter Schiff (@PeterSchiff) June 18, 2026

Schiff wrote on Thursday that at a low of $85.32 for the preferred shares, STRC would already have to offer a dividend yield of around 13.5 percent in order to move the price back towards the par value of $100, to indemnify previous investors and new shares to be able to place successfully.

For Schiff, this is an indication that Strategy’s financing system is coming under increasing pressure. The economist has been one of the most prominent Bitcoin opponents for years and regularly engages in public arguments with Strategy founder Michael Saylor.

The real problem is financing costs

In fact, the current discussion is less about Bitcoin itself than about the costs of raising capital. STRC was designed by Strategy as a floating rate, perpetual preferred stock. The dividend yield can be adjusted to keep the price as close as possible to the par value of $100. Strategy itself describes STRC as an instrument with a monthly adjustable dividend that is intended to reduce price volatility and promote tradability around par value.

But the reality on the stock market is currently developing differently. The sharp price drop signals that investors are demanding higher risk premiums. According to “Investor’s Business Daily”, STRC’s dividend yield is likely to rise again. The distribution, which originally started at nine percent, has already been increased several times and is now at 11.5 percent. Further increases appear likely.

For the crypto HODLer, this means increasing financing costs. At the same time, the pace of Bitcoin purchases has recently slowed significantly. Observers point out that the company is now making significantly smaller Bitcoin purchases than at the beginning of the year. In addition, smaller Bitcoin holdings were recently sold for the first time in years in order to achieve liquidity goals.

The Strategy share remains a controversial issue on the stock market

Despite the increasing skepticism, there are still numerous analysts who are sticking to the long-term investment story. According to estimates compiled by TipRanks, Wall Street’s current consensus for MSTR common stock remains Strong Buy. There are twelve buy recommendations and only two hold recommendations. None of the experts surveyed recommend selling. The average price target of $315.38 is also significantly above the current stock market price.

According to TipRanks, bulls argue that Strategy continues to have massive Bitcoin reserves and a strong balance sheet base even after recent setbacks. Critics, however, point to the high dependence on capital market financing, the dilution of existing shareholders through new share issues and the increasing obligations from preferred shares such as STRC.

This is what investors should pay attention to now

The collapse of preferred stock STRC could potentially mark a turning point in how Strategy is perceived. While for a long time the debate revolved almost exclusively around the Bitcoin price, attention is now increasingly focused on the company’s financing structure. The further STRC falls below its face value, the more expensive it becomes to raise capital. The more expensive it is to raise capital, the more difficult it will be to continue the aggressive Bitcoin accumulation strategy on the current scale.

Peter Schiff sees this as the beginning of a downward spiral. For investors, the current situation is primarily a question of risk profile. MSTR common stock remains, at its core, a leveraged bet on Bitcoin. If the Bitcoin price rises significantly, the share can benefit disproportionately. Conversely, falling Bitcoin prices or a deterioration in financing options have a particularly strong impact on the valuation. The situation with the preferred share STRC is more differentiated. The sharp decline in price has significantly increased the current yield and makes the stock fundamentally more attractive for income-oriented investors. At the same time, the price decline also signals that the market is pricing in higher risks. Anyone who buys STRC is betting that Strategy can maintain dividend payments in the long term and that investor confidence will return. The high yield premium is therefore not only an opportunity, but also an expression of increased uncertainty.

Carolin Ludwig, Claudia Stephan, editorial team finanzen.net

This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.

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