Strategy's preferred stock STRC fell to $73.62 on the Nasdaq on June 25. According to Protos, the Bitcoin purchased by Strategy is currently worth approximately $50.5 billion, with an unrealized loss of $13.6 billion. A law firm is soliciting interest in a potential class action lawsuit against Strategy, investigating whether the company may have released materially misleading business information to the public.
Strategy bought Bitcoin for $64.1 billion, currently worth about $50.5 billion
Since August 2020, Strategy has spent $64.1 billion buying Bitcoin. The current value of these Bitcoin holdings is about $50.5 billion, resulting in an unrealized loss of $13.6 billion. In addition to Bitcoin investment losses, Strategy's operational expenditures during the same period have exceeded $1 billion.
STRC currently has approximately 105 million shares outstanding, with a nominal value close to $10.5 billion; at $73.62, the market cap is about $7.7 billion, roughly $2.8 billion below Strategy's target of $100, and the market cap loss overnight has already exceeded $700 million.
STRC has raised its dividend rate seven times to an annualized 11.5%
Strategy created STRC with the aim of trying to maintain the stock price near $100 by adjusting the variable dividend (currently annualized 11.5%); since its launch, Strategy has raised the STRC rate seven times, with the next semi-monthly dividend scheduled to begin in mid-July.
In filings with regulators, Strategy acknowledged that the company does not need to hold any assets to support STRC. Unlike bank accounts or money market funds, STRC is not insured by FDIC or SIPC, and holders have no right to sell STRC back to Strategy at $100; on June 25, other buyers' bids were all below $74.
Law firm class action solicitation announcement exceeds 300,000 views, SEC has not yet taken regulatory action
A law firm announced it is investigating "allegations that Strategy may have released materially misleading business information to the investing public" and is soliciting stockholders to join a pending lawsuit. The announcement has received over 300,000 views. Protos notes that this is not the same as a formal filing or regulatory investigation; as of now, there is no public information indicating that the SEC has taken any regulatory action against Strategy.
Data analytics firm Arkham asked on social media: "Could STRC be the next LUNA?" Gold advocate Peter Schiff claimed that MSTR is in a "death spiral."
Frequently Asked Questions
What is STRC, and what are the disclosed risks for holders?
STRC is a preferred stock issued by Strategy, issued at a target price of $100 per share to raise funds to buy Bitcoin. Strategy acknowledged in regulatory filings that the company does not need to hold any assets to support STRC; STRC is not insured by FDIC or SIPC, and holders have no right to sell STRC back to Strategy at $100. To trade at $100, a holder must find another buyer willing to pay that price.
What is Strategy's unrealized loss on Bitcoin?
According to Protos, Strategy has spent $64.1 billion buying Bitcoin since August 2020. As of June 25, 2026, the total value is about $50.5 billion, with an unrealized loss of $13.6 billion.
Is the law firm's class action solicitation equivalent to a formal SEC investigation?
According to Protos, the law firm's class action solicitation is not the same as a formal filing or regulatory investigation; as of now, there is no public information indicating that the SEC has taken any regulatory action against Strategy.
