Strategy's preferred stock STRC, which funds its bitcoin purchases, has fallen below par value, visibly slowing the company's pace of additional bitcoin buying.

On June 21 (local time), blockchain media outlet Cointelegraph reported that STRC recently slid to about 13 percent below its $100 par value, fueling debate over Strategy's funding structure.

STRC is Strategy's flagship bitcoin funding tool, launched in July 2025. It uses an adjustable dividend to keep the price around $100, and uses the proceeds to buy more bitcoin. The current annualised dividend rate is 11.5 percent. STRC fell as low as $82.53 intraday on June 19, and the closing price also came in at $88.59. That trend also affected the suspension of at-the-market issuance.

The impact was immediately reflected in the pace of bitcoin purchases. Strategy bought 1,550 bitcoin for $101 million in the week ended June 8, and added 1,587 bitcoin for $100 million in the week ended June 15, lifting its holdings to 846,842 bitcoin. That is a sharp decline compared with early 2026.

In early June, the company also sold 32 bitcoin, worth about $2.5 million, to meet dividend obligations. The amount is small compared with total holdings, but it was seen as an example showing that if funding efficiency through STRC deteriorates, cash-like obligations could lead to limited sales of bitcoin.

Market views on the structure are mixed. Bitcoin critic Peter Schiff (피터 시프) has criticised STRC as a "typical centralised Ponzi". He argues the structure requires continued fundraising through new share issuance or the sale of bitcoin to meet obligations. Crypto trader DonAlt also questioned why STRC trades like a Ponzi after plunging below par value.

Strategy has not directly addressed such criticism in its recent stance, and has maintained that STRC is a preferred-stock-type product backed by its bitcoin-focused financial strategy. Instead, it moved to change the STRC dividend cycle from once a month to twice a month.

Some see the STRC plunge as the result of leveraged liquidations rather than a deterioration in the company's fundamentals. Smarter Web Company bitcoin strategy chief Jesse Myers (제시 마이어스) said in a June 19 post, "Strategy is fine." He argued that if current conditions hold, the company can pay STRC dividends for 32 years, and that even if bitcoin rises by only about 2 percent a year, it can be maintained virtually indefinitely. He said STRC traded near $99 to $100 for a long time, leading some investors to use high leverage on the assumption it would not fall below $95. He said margin calls and forced liquidations amplified the drop once the decline began.

Another analysis said the discount itself could draw new buying demand. Scott Melker (스콧 멜커) noted that STRC dividends are calculated based on the $100 liquidation preference value, not the market price. As a result, he said a purchase at $90 implies an expected yield of about 12.8 percent at an 11.5 percent dividend rate, while a purchase at $85 implies about 13.5 percent.

In these circumstances, the market's next focus is STRC's next dividend-rate notice due on June 30. Strategy can also use MSTR share issuance and cash holdings, without relying only on STRC for funds to buy bitcoin. If STRC fails to recover to par value, the company's pace of bitcoin accumulation may remain lower than before for some time.

STRC down to $82.6 today. Here's my read: 1. Strategy is fine. If everything stays as is, they can pay STRC dividends for 32 years. If BTC appreciates at ~2% CAGR, they can pay dividends indefinitely. 2. Why the sell-off? This appears to be a liquidation cascade. Over… pic.twitter.com/ia75w9TXWj