MicroStrategy's Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) is trading 4.0% down today at $85.44, reaching a new record low and trading significantly below its $100 par value. The decline extends Wednesday's 3.0% drop.
This fall reflects growing investor skepticism regarding the preferred stock's dividend stability and MicroStrategy's funding strategy, particularly after the company previously sold Bitcoin to cover distributions.
Wider market sentiment, influenced by persistent Bitcoin weakness (down ~1.4-2.2% today) and a hawkish outlook following the Federal Reserve's June 17 decision to maintain rates while projecting future hikes, further pressured the crypto-linked security.