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

Odaily reported on June 25 that STRC, the preferred stock issued by Strategy, fell below $82 and is currently trading at $81.83, hitting an all-time low with a decline of 6.3%.

If the price of STRC significantly drops below its par value, it means the market is demanding a higher yield as compensation, which also reflects investors' decreased confidence in its credit status or the stability of future dividends. Since Strategy has heavily relied on issuing STRC to raise funds for purchasing Bitcoin, when STRC trades below par value for an extended period, the company's cost of financing by continuing to issue new shares will rise sharply—essentially requiring it to pay a higher interest rate to borrow funds.