Strategy and STRC both fell by more than 7%, with the latter hitting a new all-time low.

According to Bitget market data, alongside Bitcoin’s sharp decline, both Strategy and its STRC have dropped over 7%: MSTR is down 7.84%, STRC is down 8.2%, currently trading at $74.25. STRC is a preferred stock issued by Strategy to raise funds for Bitcoin purchases, with a face value roughly pegged at $100. It offers high dividends, with its dividend rate adjusted based on price conditions to aim for trading as close to par as possible. STRC’s significant de-pegging signals that the market is demanding higher yields, and also reflects investors’ waning confidence in its credit and dividend stability. Strategy previously relied heavily on issuing STRC to raise capital for Bitcoin buys; if STRC trades below par, issuing new STRC would no longer be cost-effective for the company, effectively meaning borrowing at a higher cost. As a result, its ability to continue purchasing Bitcoin will be weakened.