Strategy Preferred Stock STRC Drops to $82.53, Hitting Lowest Since July Listing Last Year

According to Odaily, Strategy's dividend-paying preferred stock, Stretch (STRC), fell to a low of $82.53 on Tuesday, marking its lowest point since its listing in July last year. The product currently offers an annualized 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 its Bitcoin purchases. The company currently holds 846,842 Bitcoin, valued at approximately $53 billion at the time of writing. In April, Saylor stated that retail buyers hold about 80% of STRC and estimated that around 3 million households have allocated to the product.

In the STRC 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. Last month, the company sold 32 Bitcoin to manage the recurring costs of STRC and indicated that its Bitcoin reserves could cover 32 years of dividend payments.