Strategy’s preferred stock Stretch (STRC) continued to drift lower on Thursday, after locking in its lowest close to date on Wednesday. During intraday trading, the stock hit a low of $82.50 and closed the day at $88.59, according to Yahoo Finance.
STRC, or the Variable Rate Series A Perpetual Stretch Preferred Stock, was designed to trade at $100 by offering a variable dividend, currently at 12.9%, and adjusted monthly. When above par, Strategy issues new shares to buy bitcoin.
Thursday represents one of STRC's highest-volume days on record, with some 10.7 million shares exchanged, compared to the normal average daily volume of roughly 3.4–3.5 million shares, according to STRC.live.
This also appears to be the longest STRC has traded below $90, the price at which it debuted during Strategy’s initial public offering in July 2025.
TD Cowen published a Strategy research note on Thursday, maintaining a Buy rating on the company’s common stock, (MSTR), with a $400 price target, and on its suite of preferred stocks, including STRC. MSTR shares closed the day at $112.53, down 4%, according to The Block’s price page.
The analysts frame Strategy as evolving from a simple leveraged bitcoin proxy into a scaled Bitcoin capital markets platform.
"[Strategy CFO Andrew Kang] is emphasizing a more mature framework in which preferred dividend obligations, USD reserves, convert management, credit perception, ATM discipline and occasional BTC sales all sit underneath the same objective: maximize long-term BTC/share while preserving flexibility through market cycles," TD Cowen analysts wrote, citing three investor meetings with Kang.
Near-term, the company may prioritize reserve rebuilding and preferred support over immediate bitcoin purchases when markets are less constructive, according to TD’s interpretation of Kang’s statements.
With STRC under par, Strategy has paused the stock’s ATM program.