Strategy has suspended new share issuances through its at-the-market program after its STRC preferred stock dropped to a record low of $89. This valuation sits significantly below the $100 par value required to effectively utilize this equity instrument for capital generation.
The decline forces the company to pause a critical funding lever typically used to finance Bitcoin acquisitions. When STRC trades above par, Strategy sells shares directly into the market to fund purchases. The current discount eliminates this arbitrage opportunity until pricing stabilizes.
This liquidity constraint follows a strategic shift disclosed earlier this month. Strategy sold 32 Bitcoin to cover preferred dividend obligations, marking the first asset liquidation since 2022. Management has since established a $1.1 billion U.S. dollar reserve specifically designated for debt service and dividend payments.
Despite these headwinds, the firm continues to expand its position through common stock sales, recently acquiring an additional 1,587 Bitcoin. Strategy currently holds approximately 846,842 coins, representing roughly 4% of the total future supply cap.