Strategy's STRC Falls Below Par, Triggers Rate Hike to 12% Annually by Late June

According to Strategy Inc.'s June 29, 2026 SEC filing, STRC—the company's perpetual preferred stock—fell to $83 by late June 2026, dropping 25% below its $100 par value and triggering a contractual dividend ratchet mechanism. The board raised the annual dividend rate to 12%, currently adjusted monthly based on trading price and credit spreads. Each rate increase is permanent; the rate has risen seven consecutive times since STRC's July 2025 launch at 9%.

Strategy holds 847,363 Bitcoin and funds STRC dividends through share sales, software revenue, and a newly authorized Bitcoin monetization program. The company maintains a $2.55 billion USD reserve plus $1.25 billion in monetization capacity, totaling a $3.8 billion liquidity buffer covering approximately 26 months of dividend obligations. Retail investors hold an estimated $8.8 billion of STRC, representing roughly 83% of the buyer base, raising concentration concerns highlighted by JPMorgan and institutional analysts.