Strategy and STRC both plunged over 7%, with the latter hitting a new all-time low.

BlockBeats News, June 25th, according to Bitget's market data, following a rapid decline in Bitcoin, both Strategy and STRC dropped by over 7%. Among them, MSTR fell by 7.84% and STRC fell by 8.2%, currently trading at $74.25.

STRC is a preferred stock used by Strategy to obtain market funding to buy Bitcoin, with a face value roughly pegged to $100, offering a high dividend. The dividend yield will be adjusted according to the price situation, aiming to keep its trading price as close to the face value as possible. The significant deviation of STRC from its peg indicates that the market is demanding a higher yield, also reflecting a decrease in investor confidence in its credit/dividend stability. Previously, Strategy heavily relied on issuing STRC to fund the purchase of Bitcoin; if the STRC price falls below the face value, issuing new STRC is no longer cost-effective for the company, akin to borrowing at a higher cost. Therefore, its "ability to continue buying Bitcoin" will be weakened.