Strategy preferred stock STRC falls to $82.53, hitting lowest level since its listing in July last year

Odaily Strategy's dividend-paying preferred stock Stretch (STRC) fell to a low of $82.53 on Tuesday, hitting its lowest level since its listing in July last year. The product currently offers an annual dividend yield of 11.5%, and Michael Saylor has previously compared it to money market funds and FDIC-insured bank accounts.

Since STRC's listing, Strategy has issued over $10 billion worth of related shares to accelerate Bitcoin purchases. The company currently holds 846,842 Bitcoin, valued at approximately $53 billion at the time of writing. Saylor stated in April that retail buyers hold about 80% of STRC and estimated that roughly 3 million households have allocated to this product.

In the STRC prospectus, Strategy disclosed that the value and liquidity of this preferred stock are subject to market fluctuations, interest rate changes, the lack of an established trading market, and its subordinated status relative to the company's debt. Last month, the company sold 32 Bitcoin to manage the recurring costs of STRC and stated that its Bitcoin reserve could cover 32 years' worth of dividends.