### Friction in the Flywheel: Why STRC Dropping Below Par Halts Strategy's Bitcoin Buying Spree
**New York** — Strategy Inc.’s aggressive, multi-billion-dollar Bitcoin acquisition machine has hit a technical speed bump. The company’s specialized Variable Rate Series A Perpetual Stretch Preferred Stock, trading under the Nasdaq ticker **STRC**, has plunged well below its $100 par value, ending a volatile trading session at $88.59 after hitting an all-time intraday low of $82.50.
Because Strategy cannot efficiently issue shares below stated value, the company has officially **suspended its at-the-market (ATM) offering program**, throwing a wrench into its core capital-raising engine.
Under normal market conditions, Strategy relies on a variable monthly dividend mechanism—currently yielding an 11.5% annualized rate on the par amount—to incentivize stability. When trading above par, Strategy issues new shares through the ATM vehicle to aggressively vacuum up Bitcoin. However, with Bitcoin pulling back roughly 40% from its peak, the relationship has inverted, and trading volume has tripled as leveraged liquidations force the preferred asset down. Consequently, Strategy’s breakneck acquisition pace has slowed to a crawl, dropping from historic peaks of 34,000 BTC a week to just 1,500 BTC.
Critics argue that the reliance on continuous equity financing to fund asset accumulation mimics a vulnerable structure that risks severe cash flow strain if capital markets dry up. Conversely, supporters point out that buying STRC at a discount actually locks in an attractive effective yield of over 13%. All eyes are now on June 30, 2026, when the next dividend adjustment could potentially pull STRC back to par and restart the institutional buying engine.
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