MicroStrategy’s perpetual preferred stock, STRC, fell to a record low of approximately $75. This price represents a significant decline from its $100 par value.
The sell-off follows Bitcoin’s price drop below $60,000. MicroStrategy’s common stock (MSTR) has also lost more than 50% of its value over the past month.
Investors expressed concerns over a potential death spiral due to the company’s Bitcoin-heavy leveraged capital structure. MicroStrategy faces approximately $1.2 billion in annual dividend obligations for the STRC shares.
A law firm has launched a securities probe into the company. The investigation examines whether MicroStrategy provided misleading disclosures to the market.