MicroStrategy Stock Crashes as Stretch Price Falls to New Low

Key Insights:

• MicroStrategy stock crashed as STRC fell to its lowest price since launch, trading well below $100.
• Strategy keeps its dividend unchanged despite growing market pressure.
• Samson Mow says the drop is temporary and not a flaw in STRC’s design.

MicroStrategy stock drew fresh attention after Strategy’s STRC preferred shares dropped to about $89, their lowest level since launch. The fall has raised concerns over the company’s cash position, dividend payments, and its ability to keep using STRC to raise money for Bitcoin purchases.

MicroStrategy Stock STRC Drops Further as Dividend Stays Unchanged

MicroStrategy stock is back in the news after Strategy’s STRC preferred shares fell to their lowest price since the product launched in July 2025. The shares traded around $89, well below their $100 issue price. They have stayed below par since May 15.

STRC was built to stay close to $100 through a monthly dividend reset. If the price falls, Strategy can increase the dividend to make the shares more attractive. More buyers should then help lift the price.

That has not happened, as the company has kept the dividend at 11.5% for months, even though the market is demanding a higher return. Raising the payout would cost more cash because the dividend is paid on the full $100 value of every share.

MicroStrategy Stock STRC Analysis | Source: Shanaka Anslem Perera

Cash has become a bigger concern this year. In late May, Strategy sold 32 Bitcoin. It was the first Bitcoin sale by the company in four years. The money was used to help pay the STRC dividend. That move also broke Michael Saylor’s long-running message that the company would not sell its Bitcoin.

Reports also showed that Strategy’s cash reserve dropped from about $2.25 billion to around $1.1 billion this year.

Another problem comes from the share price itself. STRC works best when it trades close to $100. Once it stays well below that level, selling new shares becomes much harder. That could slow one of Strategy’s main ways of raising money to buy more Bitcoin.

Higher Rates Add More Pressure

The market also changed this week. On June 17, the US Federal Reserve left interest rates unchanged. At the same time, officials signaled that rates could stay high for longer. Fewer rate cuts are now expected before 2027.

That matters because higher rates usually make borrowing more expensive. Companies that depend on raising money through financial products often find it harder to attract investors in that environment.

Some people believe the recent fall is the beginning of a bigger problem for Strategy. Others do not agree. They point out that the risks connected to STRC have always been listed in the offering documents.

The company still owns 846,842 Bitcoin. Many investors believe those holdings remain the biggest support behind its business. Whether STRC moves back toward $100 will likely depend on investor demand and whether Strategy decides to increase the dividend.

Samson Mow Says the Product Still Works

Bitcoin supporter Samson Mow does not believe the latest drop means the MSTR stock STRC has failed. He said the product was designed to trade freely in the market, so it can move above or below $100. In his view, the recent decline was driven by leveraged trades rather than a problem with the product itself.

STRC Design Analysis | Source: Samson Mow

Mow also said buyers who purchase STRC below $100 still receive the same dividend as those who bought at par. Because of that, he believes long-term investors may see the lower price as a buying opportunity.

He added that STRC is still less than a year old and needs more time before anyone can judge its success. The goal, he said, is to give investors exposure to Bitcoin without the large price swings that usually come with holding the asset directly.

The next move now rests with Strategy. MicroStrategy stock investors will be watching whether the company raises the dividend, keeps selling Bitcoin when cash is needed, or waits for demand to return on its own.

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