Crypto-linked preferreds slump after STRC plunge

Michael Saylor’s STRC Variable Rate Series A Perpetual Preferred fell to $72.60 from its $100 par this week. Other crypto-linked preferreds moved lower: BitMine Immersion Technologies’ 9.5% Series A Perpetual Preferred (BMNP) closed at $81.40 and Strive’s Variable Rate Series A Perpetual Preferred (SATA) traded at $83.53.

BMNP dropped each trading day this month from a high near $92, and BitMine’s common shares declined to about $13 from a 2025 peak near $160. Preferred issues tied to Strategy, including STRK, STRD and STRF, have also weakened in recent sessions.

Prices of major cryptocurrencies have fallen sharply over the same period. Bitcoin declined to roughly $58,000 from a record high near $126,300, while Ether moved from near $5,000 to about $1,500. Those declines produced large unrealized losses for companies holding crypto and pushed many firms’ market net asset value, or mNAV, below 1.

Issuers have taken steps to raise liquidity. Strategy sold about $300 million of equity last week and reported roughly $1.4 billion in cash on hand. The firm indicated that amount would not cover a full year of dividend payments at current payout levels. Strategy also completed its first sale of Bitcoin after a long-standing policy against selling; with an average purchase price near $68,000 per coin, the transactions are likely to have been at a loss. Strive reported it has a two-year cover to meet dividend obligations. BitMine reported about $601 million in cash and marketable securities and no debt.

Market participants and analysts highlight the potential consequences of continued crypto weakness. They note that companies may need to raise additional capital, cut or suspend dividends, or slow cryptocurrency accumulation if prices remain low. Perpetual, variable-rate preferreds can create sustained cash needs for coupon payments as asset values decline, and mNAVs below 1 limit options for equity raises without substantial dilution.

Trading trends during a broad equity rally have coincided with net outflows from crypto ETFs and funds, reducing demand for crypto exposure and pressuring securities issued by publicly traded crypto holders. Investors and company backers are monitoring crypto prices and issuer balance sheets for signs of recovery or further adjustments.