EL7.AI
CryptoUpdated•Originally published 19 June 2026•Updated 19 June 2026•
2 min read

MicroStrategy Preferred Stock Risks Mount on B- Junk Rating and Asset Backing Concerns

Key Facts

1STRC perpetual preferred stock traded as low as $82.61, nearly 17% below its $100 stated amount.
2MSTR shares fell 3.4% to $112.53 as Bitcoin dropped approximately 2.5% to trade near $62,730.

Amid growing scrutiny of crypto-linked balance sheets, new analysis has highlighted deep structural risks within MicroStrategy's STRC preferred stock. According to reports, these shares carry a B- junk credit rating from S&P, with retail investors holding approximately $8.8 billion of the issuance. Crucially, STRC shares are unsecured perpetual equity instruments with no legal lien on the company's Bitcoin reserves, and they feature discretionary dividends that the company can cut at its own discretion.

This credit revelation comes as STRC shares traded at a 17% discount to their $100 par value, hitting lows of $82.61. Per market data, while peers like Coinbase (COIN) and Marathon Digital (MARA) track Bitcoin's price action, MicroStrategy's preferred instruments are now pricing in specific credit risk that exceeds broader market volatility. The lack of direct asset backing means that retail holders are exposed to the company's solvency without the protection of the underlying digital assets they intended to track.

Traders are focusing on MSTR common stock, which stood at $112.53 (at close 2026-06-18), as the market digests the implications of the junk rating. Looking ahead, the upcoming US Industrial Production data will be a key catalyst for overall risk appetite. Investors should watch if Bitcoin can maintain support levels above $60,000, as further downside in the underlying asset could exacerbate the perceived credit risk for MicroStrategy's unsecured preferred holders.