Here’s another rewritten version with a tighter, more neutral financial-news tone:

The drop has temporarily shut down Strategy’s ability to issue STRC shares above par, removing a key funding channel used to finance bitcoin purchases. The same preferred stock has also played a role in the company’s first bitcoin sale this month due to dividend obligations.

Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), a central part of its bitcoin accumulation strategy, has fallen to a record low, further constraining capital-raising capacity.

STRC closed at $89 on Wednesday, its lowest level since its July 2025 launch, leaving it roughly 11% below its $100 par value.

The security pays a variable dividend currently set at an annualized rate of about 12.9%, adjusted monthly with the aim of keeping the price close to par. When STRC trades above $100, Strategy can issue additional shares through an at-the-market program and deploy the proceeds into bitcoin purchases. With the stock now below par, that issuance activity has been paused.

The weakness also arrives at a notable moment for the instrument. STRC-related dividend obligations led Strategy to sell bitcoin for the first time since it began accumulating BTC in 2022. The company disclosed it sold 32 bitcoin for about $2.5 million in late May to meet those payments, a move that contrasted with Michael Saylor’s long-standing stance against selling bitcoin.

Earlier this month, Strategy said it had built a $1.1 billion cash reserve to cover preferred dividends and debt obligations, while continuing to accumulate 1,587 BTC via common stock issuance.

The company remains the largest corporate holder of bitcoin, with roughly 846,842 BTC, equal to about 4% of total supply.

STRC has traded below par during prior periods of bitcoin volatility. Bitcoin has recently held between $64,000 and $65,000, while Strategy’s common shares (MSTR) fell around 5% on Wednesday to $116.52.