12% interest, paid out daily
Strategy wants to switch its STRC preferred stock from twice-monthly payouts to accrual by calendar day, including weekends and holidays. The annualized rate stays at 12%, but each individual payment gets smaller. Settle up every day, and holders get a little pocket money daily.
That 12% has to be paid with real cash. BTC sitting in cold wallets doesn’t earn a penny of interest, so payouts can only be funded by issuing new preferred stock, selling shares, or rolling over financing. Breaking up the big month-end payment into daily settlements spreads the cash-flow pressure across every day—but if the market falls and financing tightens, that rollover machine can grind to a halt. In the short term, a BTC rebound into overhead resistance could easily be pushed back down by this kind of hidden selling pressure. Whether the pullback finds support may depend on their next financing window.
For those of you holding high-yield preferred stock: are you looking forward to counting your interest every day, or worried that one day, payday could turn into a payment pause?
$BTC $ETH $SOL
Strategy wants to switch its STRC preferred stock from twice-monthly payouts to accrual by calendar day, including weekends and holidays. The annualized rate stays at 12%, but each individual payment gets smaller. Settle up every day, and holders get a little pocket money daily.
That 12% has to be paid with real cash. BTC sitting in cold wallets doesn’t earn a penny of interest, so payouts can only be funded by issuing new preferred stock, selling shares, or rolling over financing. Breaking up the big month-end payment into daily settlements spreads the cash-flow pressure across every day—but if the market falls and financing tightens, that rollover machine can grind to a halt. In the short term, a BTC rebound into overhead resistance could easily be pushed back down by this kind of hidden selling pressure. Whether the pullback finds support may depend on their next financing window.
For those of you holding high-yield preferred stock: are you looking forward to counting your interest every day, or worried that one day, payday could turn into a payment pause?
$BTC $ETH $SOL