Strategy Preferred Stock STRC Falls to $82.53, Reaching Lowest Level Since Its Listing in July Last Year

Odaily News Strategy’s dividend-paying preferred stock Stretch (STRC) fell to a low of $82.53 on Tuesday, reaching its lowest level since its listing in July last year. The product currently offers an annualized dividend of 11.5%. Michael Saylor once 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 around 3 million households have allocated to the product.

In STRC’s prospectus, Strategy disclosed that the value and liquidity of this preferred stock are affected by market volatility, interest rate changes, the lack of a mature trading market, and its subordinated status relative to the company’s debt. The company sold 32 Bitcoin last month to manage the recurring costs of STRC and stated that its Bitcoin reserve could cover 32 years of dividend payments.