Strategy Preferred Stock STRC Falls Below $99, Cash Reserves Cover Only 6 Months of Dividends
Source：
www.coindesk.com
According to CoinDesk, Strategy’s perpetual preferred stock STRC (Stretch) hit a low of $97.11 on Thursday before rebounding to $98.57—failing to sustain its $100 par value. STRC’s pressure stems primarily from Bitcoin’s retreat to around $73,000, compounded by the ex-dividend date effect.
Recently, Strategy spent $1.5 billion repurchasing its zero-coupon convertible bonds maturing in 2029, causing its cash reserves to plunge from approximately $2.25 billion to $871 million. Against its annual preferred-stock dividend obligation of roughly $1.7 billion, the company’s current cash covers only about six months—far short of its previously stated target of 24 months’ coverage. Executive Chairman Michael Saylor stated that the company plans to raise funds via Bitcoin sales, equity issuances when MSTR’s share price exceeds its NAV by 1.22x, or further STRC issuances.
Meanwhile, rival Strive Asset Management’s perpetual preferred stock SATA continues to trade at its $100 par value, offering an approximate 13% dividend yield. Strive also plans to introduce a daily dividend mechanism and has fully eliminated its debt. Over the past three months, Strive’s stock has risen roughly 110%, significantly outperforming both MSTR’s 12% gain and Bitcoin’s 8% increase.
