MicroStrategy’s Series A perpetual preferred stock (STRC) closed at a record low of $88.59 on June 18. The stock reached an intraday low of $82.50, falling significantly below its $100 par value. This decline pressures the primary funding mechanism for the company’s Bitcoin acquisitions.
MicroStrategy paused its at-the-market (ATM) program used to issue new STRC shares for Bitcoin purchases. Issuing shares below par value is currently economically unviable. The halt stalls the Bitcoin flywheel strategy central to the company’s operations.
Market concerns suggest MicroStrategy may sell Bitcoin holdings to cover STRC dividend payments. Arca CIO Jeff Dorman identified a multi-billion dollar Bitcoin sale as a potential option to stabilize the company. Analysts continue to monitor the firm's next moves.