Some background first: STRC was originally Strategy’s fundraising machine—a perpetual preferred stock yielding about 12% annually. As long as its share price stayed above its $100 par value, the company could issue new shares and use the proceeds to buy BTC. After it fell below par on May 15, new share issuance ground to a halt, and the price briefly hit a low of $74.57 in late June. From late July, the company instead started buying back shares to support the price, spending about $1.6 billion in total. Much of the funding came from selling MSTR, and the company even sold BTC over the summer. A fundraising tool has become something that needs money spent to maintain it—how long do you think this cycle can continue? Share your thoughts in the comments.
$BTC $MSTR $STRC
#比特币 #Strategy #PreferredStock
(Source: Protos, Unchained)
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