Investing

It’s not just STRC: Top preferred stocks like SATA and BMNP are slumping

Michael Saylor’s STRC stock has made headlines this week as its implosion gained momentum amid the ongoing crypto market weakness. The Variable Rate Series A Perpetual Stretch Preferred Stock plunged from the par level of $100 to a record low of $72.60. Sadly, it is not the only crypto-related preferred stock that is imploding this week.

STRC, BMNP, and SATA stocks are plunging

The ongoing woes in the STRC stock price has spread to other similar assets. For example, the recently launched BitMine Immersion Technologies 9.5% Series A Perpetual Preferred Stock (BMNP) has slumped in all trading days. 

It ended the day at $81.40 from the monthly high of $92. This retreat is one of the top reasons why the BitMine stock price continued falling, reaching a low of $13. At its peak in 2025, the stock was trading at $160 as investors cheered its evolution from a Bitcoin mining company into an Ethereum accumulation one.

Meanwhile, Strive’s Variable Rate Series A Perpetual Preferred Stock (SATA) plunged to $83.53. Strive is an asset management company that was started by Vivek Ramaswamy, the healthcare billionaire. It is one of the top Bitcoin accumulation companies.

Other preferred stocks by Strategy have also imploded in the past few days. This includes stocks like STRK, STRD, and STRF. 

Crypto market weakness and need to raise cash

The ongoing retreat of preferred stocks is happening as the crypto market crash intensifies. Bitcoin dropped to $58,000 from a record high of $126,300, while Ethereum has slumped from nearly $5,000 to $1,500 today. 

The ongoing crypto market crash has led to billions of dollars in unrealized losses among these companies. Most of them have even seen their market net asset value (mNAV) drop below 1.

Therefore, there are concerns that the companies will need to raise cash to continue paying their dividends. Also, they may be forced to either pause or end their Bitcoin and Ethereum accumulation approach.

Strategy raised $300 million in cash last week by selling shares and diluting its shareholders. It now has $1.4 billion in cash, which is not enough to cover its dividend payouts for a year.

Strive has insisted that it has a two-year cover to pay its dividends, while BitMine has $601 million in cash and marketable securities and no debt. 

https://twitter.com/BitMNR/status/2070182232413573387

A major red flag in the industry happened a few months ago when Strategy changed its long-standing policy that it would never sell its Bitcoins. It made its first sale a few weeks ago, and this process may continue over time. If this happens, it will be selling at a loss s the average Bitcoin buying price was $68,000.

The hope among Tom Lee, Michael Saylor, and Ramaswamy is that the crypto market crash will end soon. Such a move will boost the value of their assets and boost confidence among investors.

The challenge, however, is that the crypto market is competing with stocks, which are in a prolonged bull run. As a result, investors have continued to dump crypto ETFs and rotating to stocks. For a crypto recovery to happen, a reversal in the stock market will need to happen.

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