Strategy's preferred stock $STRC closed at $99.99 last night, returning above $99.95 for the first time in 165 days.
It has a $100 par value and now pays $12 a year, or 12% based on par. For all 165 days, it had traded below par, hitting a 52-week low of $71.25. The market was unwilling to lend Strategy money at $100 to buy $BTC , and the discount never fully closed. Today is the ex-dividend date. After hours, it fell back to $99.55, so it still hasn't firmly held this level.
Strategy itself is also supporting this stock. Its Q3 earnings report was quite clear: to restore STRC to health, it spent $2.04 billion on buybacks and built its dollar reserves to $5.07 billion—enough to cover 3.4 years of dividends and interest. Starting November 1, STRC will pay dividends daily, and the semi-monthly dividend that was due on November 15 will no longer be paid.
So this return to par is, to a considerable extent, the result of buybacks. Only part of it reflects the market's willingness to buy at $100; the rest is being supported by the company spending its own money.
Next, watch whether it can issue preferred shares again at prices close to par. If it can, the money to buy Bitcoin can keep flowing. If it can't, the price will still need buybacks to support it.
#strategy旗下strc165天来首次升至99.95美元
It has a $100 par value and now pays $12 a year, or 12% based on par. For all 165 days, it had traded below par, hitting a 52-week low of $71.25. The market was unwilling to lend Strategy money at $100 to buy $BTC , and the discount never fully closed. Today is the ex-dividend date. After hours, it fell back to $99.55, so it still hasn't firmly held this level.
Strategy itself is also supporting this stock. Its Q3 earnings report was quite clear: to restore STRC to health, it spent $2.04 billion on buybacks and built its dollar reserves to $5.07 billion—enough to cover 3.4 years of dividends and interest. Starting November 1, STRC will pay dividends daily, and the semi-monthly dividend that was due on November 15 will no longer be paid.
So this return to par is, to a considerable extent, the result of buybacks. Only part of it reflects the market's willingness to buy at $100; the rest is being supported by the company spending its own money.
Next, watch whether it can issue preferred shares again at prices close to par. If it can, the money to buy Bitcoin can keep flowing. If it can't, the price will still need buybacks to support it.
#strategy旗下strc165天来首次升至99.95美元
