STRC hits record low as Bitcoin falls below $60K, triggering liquidations
Strategy’s Perpetual Stretch Preferred Stock (STRC) sank to a record low on Friday during a broad crypto selloff. STRC hit an intraday low of $90.40, then recovered to around $93.40. The move marks the weakest level since its July 2025 debut and adds stress to Strategy’s financing model.
The product targets trading near its $100 par amount, with Strategy able to adjust the dividend rate monthly. STRC currently implies an 11.50% annualized dividend on the $100 stated value, but the rate can rise or fall. IBD reported the latest drop could push the dividend rate to at least 11.75%, potentially increasing annual financing costs by roughly $26 million on its $10.5B STRC issuance.
Crypto weakness was led by Bitcoin, which briefly fell below $60,000 (lowest since Oct 2024) before rebounding. Bitcoin was around $62,000 at the time of writing, down about 3% over 24 hours. Total crypto market capitalization fell about 3% to roughly $2.2T, the lowest since Oct 2024.
Derivatives markets amplified the move: CoinGlass recorded about $1.72B in liquidations over 24 hours, including ~$1.41B long liquidations and ~$305M short liquidations, as leveraged traders were forced out.
Strategy shares also slid, hitting about $114 (lowest since Feb 2026) before recovering to around $120. The price weakness follows Strategy’s disclosure earlier this week that it sold 32 BTC between May 26 and May 31 for about $2.5M to fund preferred stock distributions—its first Bitcoin sale in years.
Bearish
This news is bearish because STRC’s sharp record-low move is directly tied to a Bitcoin-driven risk-off episode. When BTC briefly broke below $60K, the market saw both spot weakness (total crypto market cap down ~3% to ~$2.2T) and a major derivatives unwind (about $1.72B liquidations, heavily skewed to long positions). That combination typically signals forced selling, higher volatility, and reduced near-term risk appetite.
In the short term, traders should expect momentum to remain fragile: liquidation-driven selloffs often cause additional sell pressure as remaining leveraged longs de-risk and bid depth deteriorates. STRC itself can also become a sentiment barometer for financing stress tied to dividend/valuation mechanics, reinforcing negative sentiment during BTC weakness.
In the long term, the story highlights how corporate treasury actions and financing costs can interact with crypto liquidity. Strategy’s BTC sale for preferred distributions may not be large in absolute terms, but in a down tape it can amplify perceptions of supply or reduced conviction. Similar past patterns—BTC breaks key support levels, then derivatives liquidations spike—have historically led to choppy rebounds followed by renewed drawdowns unless BTC reclaims the broken support zone.