Strategy’s STRC preferred stock returns to the $100 mark, possibly fueling more demand for Bitcoin

Strategy’s STRC Preferred Stock Hits $100, Paving Way for More Bitcoin Buys

Strategy’s (MSTR) perpetual preferred equity, STRC, surged back to $100 in pre-market trading, its highest level since early November. The move could enable the company to raise additional capital for Bitcoin (BTC $90,637) purchases.

STRC, a short-duration, high-yield credit product, last traded at par between Nov. 4 and Nov. 13 before slipping to around $90. Now that it has returned to $100, Strategy can sell shares through at-the-market (ATM) offerings, tapping the proceeds for further BTC accumulation.

The equity pays an 11% annual dividend, distributed monthly, with rates adjusted monthly to maintain price stability near par. Since launching in July, STRC has gained 16%, delivering an effective yield of roughly 11%.

This January marked the fifth dividend increase for STRC, raising the rate to 11%. In pre-market trading, Strategy’s common stock climbed 4% to $165, while STRC was virtually unchanged at $100.