Strategy’s floating-rate perpetual preferred stock, STRC, hit $100 intraday on November 4 for the first time since May this year. It slipped slightly to $99.98 at the close, then climbed back above $100 in after-hours trading.
You could say this price was propped back up with a lot of money. STRC once fell to a low of $71.25 in June. To bring the price back near par, Strategy had spent about $2.25 billion on open-market repurchases by November 1. In addition, in late October the company passed a resolution with 99.3% of shareholders voting in favor of changing dividend payments from once every two weeks to daily. This eliminated the technical price drop that occurred on each ex-dividend date. The annualized dividend yield currently stands at 12%.
The $100 mark is a key threshold: it is the issuance floor set by Strategy itself. The company’s policy is not to issue new STRC below its $100 par value. Since the price had stayed below par for the past few months, the company did not raise funds by selling STRC in the third quarter.
Put simply, STRC is a channel for raising funds to buy Bitcoin. Now that the price has returned to $100, that channel has, in theory, reopened.
But one point needs to be made clear: the price touching $100 does not mean the company has automatically started issuing new shares. Whether it issues shares, and in what amount, will depend on the company’s actions from here. In the short term, this is a price recovery; over the longer term, we’ll have to see whether this financing channel can genuinely get up and running again.
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$BTC #Strategy旗下STRC自5月以来首次触及100美元 $ETH $TRUMP
This is an objective summary of publicly available information and mechanisms only, and does not constitute investment advice.
You could say this price was propped back up with a lot of money. STRC once fell to a low of $71.25 in June. To bring the price back near par, Strategy had spent about $2.25 billion on open-market repurchases by November 1. In addition, in late October the company passed a resolution with 99.3% of shareholders voting in favor of changing dividend payments from once every two weeks to daily. This eliminated the technical price drop that occurred on each ex-dividend date. The annualized dividend yield currently stands at 12%.
The $100 mark is a key threshold: it is the issuance floor set by Strategy itself. The company’s policy is not to issue new STRC below its $100 par value. Since the price had stayed below par for the past few months, the company did not raise funds by selling STRC in the third quarter.
Put simply, STRC is a channel for raising funds to buy Bitcoin. Now that the price has returned to $100, that channel has, in theory, reopened.
But one point needs to be made clear: the price touching $100 does not mean the company has automatically started issuing new shares. Whether it issues shares, and in what amount, will depend on the company’s actions from here. In the short term, this is a price recovery; over the longer term, we’ll have to see whether this financing channel can genuinely get up and running again.
Follow me for more updates like this.
$BTC #Strategy旗下STRC自5月以来首次触及100美元 $ETH $TRUMP
This is an objective summary of publicly available information and mechanisms only, and does not constitute investment advice.