Strategy’s bitcoin-backed preferred stock remains under pressure, trading well below its intended $100 par value as investors weigh dividend sustainability concerns and rising competition from Strive’s SATA.

The company’s (MSTR) yield-focused preferred security, STRC, closed Tuesday at $91.79—its third-weakest finish since its July 2025 launch—amid softer bitcoin prices and ongoing balance sheet concerns.

The only lower closes came shortly after its debut, when STRC fell to $88.60. Although it was introduced at around $90 and structured to trade near par, the security has struggled to regain the $100 level and has not reached it since May 15, the most recent ex-dividend date.

Historically, STRC tended to move close to par ahead of ex-dividend dates, when eligibility for the next payout expires. Afterward, the price would typically decline by roughly the dividend amount before gradually recovering. That pattern failed to hold on June 15, when STRC did not rebound back toward par.

Several factors appear to be driving the continued weakness.

For one, STRC has generally tracked bitcoin’s performance, and the cryptocurrency remains subdued near $65,000—roughly 50% below its October high.

Additionally, dividend coverage has become a key concern. Following the use of cash reserves to repay $1.5 billion in convertible debt, Strategy’s dividend runway has narrowed to about seven months, down significantly from roughly 24 months previously.

At the same time, investors are increasingly favoring a rival offering from Strive (ASST). Its bitcoin-backed preferred security, SATA, continues to trade close to its $100 par value while offering a higher yield of around 13%, compared to STRC’s 11.5%.

SATA also differentiates itself with daily dividend payments, versus STRC’s bi-monthly schedule. Moreover, Strive has no outstanding debt, placing SATA at the top of its capital structure without obligations to convertible debt holders—an appealing feature for income-focused investors.

As a result, the pricing gap between the two securities has widened notably. STRC is currently trading at an approximate $8.20 discount to SATA, the largest spread on record, with SATA holding near $99.99.

Based on its current payout and market price, STRC offers an annualized yield of about 12.53%. This suggests the market may be pricing in the need for roughly a 100-basis-point increase in its dividend to revive demand and help the stock move closer to its intended par value.