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Odaily reports: Analysts at StoneX and TD Cowen believe that Strategy's preferred stock financing structure has stabilized and liquidity has improved, creating conditions for the company to resume accumulating Bitcoin and increase its Bitcoin holdings per share. Both institutions maintain a Buy rating, with target prices of $435 and $260, respectively.As of the end of the third quarter, Strategy held $5.07 billion in U.S. dollar assets, including $4.83 billion in cash reserves, sufficient to cover approximately 3.2 to 3.4 years of preferred stock dividends and debt interest. Strategy also spent approximately $2 billion to repurchase STRC preferred shares, helping its price recover to near its $100 par value. However, because funds were prioritized for replenishing cash reserves and supporting preferred stock rather than accumulating Bitcoin, Strategy's Bitcoin holdings per share declined 3.7% during the year.Additionally, holders of STRC, STRF, STRK, and STRD preferred shares have approved daily accrual of dividends: STRC effective November 1, and the other three classes effective January 1 of next year. Management stated that the move is intended to reduce volatility, improve liquidity, and expand demand. TD Cowen believes that broader distribution channels and better liquidity could ultimately enhance Strategy's efficiency in issuing "digital credit" products.
Odaily reports: According to Bitfinex analysis, Strategy shareholders voted on October 28 to approve a proposal for daily dividend payments on STRC preferred stock, with preliminary results showing 99.3% of votes in favor. STRC is expected to shift from semi-monthly dividend payments to daily dividend payments starting November 1, with the first cash dividend payment arriving on November 2; Strategy's other three preferred stocks, STRF, STRK, and STRD, are expected to follow suit in January 2027.Strategy's move aims to reduce price volatility around ex-dividend dates. Company CEO Phong Le stated that previously, when STRC paid dividends monthly, prices fell by an average of about 49 basis points around the ex-dividend date, which dropped to about 36 basis points after switching to semi-monthly payments. The company expects that daily dividend payments will further disperse selling pressure and improve price stability.This model was not pioneered by Strategy. Bitcoin treasury company Strive converted its SATA preferred stock to daily dividend payments in June of this year and launched a subordinated preferred stock, SATS, with a fixed annual dividend rate of 15%. In October, Strive issued 7 million shares of SATS at $90 per share, raising approximately $630 million, and used about $511 million of that to purchase 6,182 BTC.
Odaily News: Michael Saylor, Executive Chairman of digital asset financial firm Strategy, stated that if you're looking for the next billion-dollar financial business, you should explore digital credit. He noted that digital credit can transform Bitcoin-centered capital strategies into yield-generating products. Within Strategy's digital credit product line, the Stride Preferred Stock (STRD), Stretch Preferred Stock (STRC), Strike Preferred Stock (STRK), and Strife Preferred Stock (STRF) offer effective yields of 15.29%, 12.63%, 12.08%, and 10.38%, respectively. These preferred securities provide the company with an additional financing avenue beyond common stock and debt.
Odaily News: Strategy has proposed adjusting the dividend mechanism for its STRC preferred stock, planning to change the current monthly dividend distribution to twice a month (semi-monthly), subject to shareholder approval.STRC is a perpetual preferred stock, targeting trading near a par value of $100, with its price regulated through a floating dividend mechanism. The current annualized dividend yield is approximately 11.5%. The company stated that increasing the dividend frequency helps reduce reinvestment lag, enhance market liquidity, and improve price stability.STRC is one of a series of preferred stock financing instruments within Strategy, forming part of its capital structure alongside products like STRF, STRE, STRK, and STRD. These instruments have already helped the company raise significant funds for its ongoing accumulation of Bitcoin.
Odaily News Bitcoin treasury company Strategy's perpetual preferred shares, STRC, recorded approximately $1.1 billion in trading volume on April 13, representing a nearly 47% increase from the previous record. This has become a core financing tool for the company to accelerate its Bitcoin accumulation. Strategy raises capital by selling preferred shares like STRC and uses the funds for high-frequency Bitcoin purchases.Data shows that Strategy recently purchased 13,927 BTC for approximately $1 billion, bringing its total holdings to 780,897 BTC. The related funds primarily came from the issuance of over 10 million STRC shares. Within the overall capital plan, STRC, along with STRK, STRF, STRD, and common stock financing, constitutes its "42/42" financing framework. The goal is to raise $84 billion by 2027 for continuous Bitcoin purchases. Current market views suggest that STRC is gradually becoming the dominant instrument within this financing system. (The Block)