Bitcoin’s Price Drops More Than 40% Since STRC Launch: Is Strategy ‘Fine’?

This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile. Always do your own research before making any investment decisions.

Bitcoin‘s market value has plunged over 40% since Strategy’s preferred stock (STRC) debuted in July 2025, Cointelegraph reports. This drop highlights tension between fragile crypto markets and the firm’s funding model, as STRC hit an all-time low of $82.53 recently and closed a session at $88.59 — well under its $100 par value. That steep discount reflects growing investor doubts about STRC’s dividend system and the overall health of Strategy’s Bitcoin treasury, which holds 846,842 BTC — worth about $53 billion at current prices, according to Coingabbar’s coverage and Decrypt’s coverage data.

STRC’s Market Mechanism and Dividend Yield

STRC was designed to trade close to its $100 par value by tweaking dividends, which are now set at an 11.5% annualized rate. Those dividends largely come from buying Bitcoin. But the plunge below $90 pushes the effective yield higher for new buyers — at $90, dividend yields jump to around 12.8%, and near $85, investors can get about 13.5%, per Cointelegraph’s figures.

The dividend approach depends heavily on steady BTC reserves and continual income. Strategy’s recent pullback from buying Bitcoin through STRC suggests this key demand source is weakening. Decrypt reveals the firm expects to distribute roughly $100 million to investors in the next payout while working to keep dividends steady despite market pressures.

Strategy’s Bitcoin Holdings and Recent Purchases

Though STRC faces heavy headwinds, Strategy keeps adding Bitcoin — just more cautiously. The company bought 1,550 BTC for $101 million in the week ending June 8, then another 1,587 BTC for $100 million the following week. These purchases brought its Bitcoin hoard to 846,842 BTC, even though buying has slowed compared to previous months. For instance, in April, Strategy snapped up 34,164 BTC for $2.54 billion, and in May, it added 24,869 BTC worth about $2.01 billion, Cointelegraph notes.

Coingabbar points out that Strategy also sold 32 BTC between May 26 and May 31 — their first first sale since 2022 — for about $2.5 million. This move signals some caution on liquidity amid choppy markets. Plus, the firm’s U.S. dollar reserves shrank from $2.25 billion at the start of 2026 to $1.1 billion after repurchasing discounted debt, adding to its complex funding picture.

Financial Pressures and Stock Performance

Strategy’s flagship preferred stock is feeling intense financial strain amid broad market challenges and internal funding pains. Cointelegraph reports STRC’s 11.5% dividend rate has held steady for four months, even as the stock price has fallen sharply.

Meanwhile, Strategy’s common stock also took a hit, closing at $112.53 on June 19. It dropped over 3% in one session and more than 70% from its November 2024 highs near $400. The falling prices of both common and preferred shares underscore investors’ worries about long-term viability in a tough Bitcoin price environment. Decrypt confirms Strategy’s equity value dropped by 32% in the past month, reflecting growing risk perception.

Market Reactions and Criticisms of STRC

The steep discount and uneven trading in STRC have sparked criticism from market watchers. Cointelegraph cites detractors who compare STRC to a “classic centralized Ponzi” scheme, since its dividends rely on ongoing Bitcoin buying and stable stock prices — conditions the current market undercuts.

Still, Scott Melker’s analysis on Cointelegraph suggests that the discounted STRC price might attract income buyers willing to accept high effective yields amid uncertainty. The stock currently yields about 13%, offering a rare fixed-income-like option in the crypto space.

Broader Bitcoin Price Context and Strategy’s Role

Bitcoin trades around $62,605, below all four major exponential moving averages, with a relative strength index near 34.40, signaling bearish momentum.

Shifts in institutional demand and funding models will likely decide if Bitcoin and STRC can bounce back soon, according to Decrypt.

Outlook for STRC and Strategy’s Financial Health

While STRC’s slide below $90 and its steep discount have alarmed investors, experts caution this doesn’t yet signal a crisis for the Bitcoin treasury giant. Decrypt reports Strategy claims it has “32 years of dividend coverage through our BTC reserve,” indicating large reserves to fulfill obligations in the short term.

Bitcoin’s 40% drop since STRC’s debut reveals the fragile link between cryptocurrency markets and corporate funding vehicles. How Strategy navigates these pressures will be key to watch as market conditions evolve, according to Coingabbar.