Strategy’s STRC Preferred Stock Hits $100, Unlocking Potential for More Bitcoin Buys
Strategy’s (MSTR) perpetual preferred equity, STRC, climbed back to $100 in pre-market trading, its first time at that level since early November. The rebound could allow the company to raise capital for additional Bitcoin (BTC $90,637) purchases.
STRC, a short-duration, high-yield credit product, last traded near $100 between Nov. 4 and Nov. 13 before dropping to around $90. With the stock back at par, Strategy can sell shares through at-the-market (ATM) offerings to fund further BTC acquisitions.
The equity pays an 11% annual dividend, distributed monthly, with rates reset monthly to maintain stability near par. Since its July launch, STRC has gained 16%, offering an effective yield of roughly 11%.
This January marked the fifth dividend increase for STRC, with the rate lifted to 11%. Meanwhile, Strategy’s common stock rose 4% in pre-market trading to $165, while STRC edged slightly higher to $100.
