MicroStrategy's preferred stock STRC sees '$100 depegging'

Shares of STRC, the preferred stock of major Bitcoin holder MicroStrategy (MSTR), extended their decline in pre-market trading today, currently trading at around $94.65. The drop has sparked concerns within the crypto community that weakness in Bitcoin has caused a "$100 depegging" for the stock. MicroStrategy operates its preferred stock with a structure designed to keep the market price near $100 by adjusting the monthly cash dividend rate. When the STRC price falls below $100, it creates a potential arbitrage opportunity for investors, who can buy the stock at a lower price while receiving the same standard dividend per share. However, MicroStrategy has officially stated that STRC is not a bank deposit and comes with no guarantees of profit, liquidity, or future performance. Separately, sUSDat, a yield-bearing stablecoin collateralized by STRC, has also depegged. The dollar-pegged stablecoin is issued by the on-chain finance protocol Saturn. According to CoinMarketCap, sUSDat is currently trading at approximately $0.9375.