Strategy’s STRC preferred stock closed at $91.79 on Tuesday, marking its weakest level this year and falling below the $100 target. The decline reflects investor demands for higher yields amid Bitcoin’s pullback.
The $10.5 billion variable-rate perpetual preferred stock trades under the ticker STRC. It expanded from $2.8 billion to $10.5 billion through at-the-market issuance over the past year. The stock pays an annual dividend of $11.50, resulting in a current yield of about 12.6 percent at recent prices.
Kraken chief economist Thomas Perfumo noted that about 86 percent of the variation in STRC’s yield spread can be explained by moves in Bitcoin’s price. Andre Dragosh, Bitwise Europe's head of research, stated that Strategy needs to raise the dividend by slightly more than $1 to pull STRC to par, with equilibrium at around $12.60.
Parker White, chief operating officer at DeFi Development Corp., highlighted comparisons to Strive’s SATA product, which trades near par with a 13 percent payout and daily dividends. White suggested Strategy could stabilize STRC by raising the dividend to 12 percent and increasing the call price.
