STRC falls below $82, hitting an all-time low

BlockBeats News, June 25th, according to Bitget data, the preferred stock STRC issued by Strategy plummeted below $82, now trading at $81.83, hitting a historical low with a 6.3% decrease.

It is reported that STRC is a preferred stock issued by Strategy to the market to finance the purchase of Bitcoin. The face value is roughly pegged to $100, offering a high dividend. The dividend yield will be adjusted according to the price situation, aiming to trade as close to the face value as possible. The significant depegging of STRC indicates that the market demands a higher yield and also reflects a decrease in investors' confidence in its credit/dividend stability. Strategy previously relied heavily on issuing STRC to finance the purchase of Bitcoin; if the STRC price falls below the face value, issuing new STRC is no longer cost-effective for the company, equivalent to borrowing at a higher cost. Therefore, its "continued buying power" will be weakened.