Strategy’s $10 billion STRC Bitcoin yield product sinks to yearly low as market demands higher payout
Strategy’s STRC preferred stock, a key financing tool for buying Bitcoin, has fallen to about $91.79, its weakest close this year and well below the $100 level Strategy wants to maintain. The drop reflects weaker Bitcoin prices, rising yield demands, and competition from better-paying preferreds. STRC pays an $11.50 annual dividend, implying a yield around 12.6% at current prices, so Strategy may need to raise the payout to pull it back toward par. Market behavior suggests investors are treating STRC more like a Bitcoin-linked credit product than a stable preferred. Rival Bitcoin-backed preferred SATA is holding near $100 with a higher payout and daily dividends, making it more attractive and harder to short. Strategy could support STRC by raising dividends, changing payment frequency, or boosting cash reserves, but each option would cost flexibility and could slow Bitcoin accumulation.
