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Strategy Preferred Stock (STRC) fell to $82.53, hitting a low since its initial public offering last July
Svmuu News: Stretch (STRC), a dividend-paying preferred stock issued by Strategy, fell to a low of $82.53 on Tuesday, hitting its lowest point since its initial public offering last July.The product currently offers an annualized dividend yield of 11.5%. Michael Saylor has compared it to money market funds and FDIC-insured bank accounts. Since STRC’s listing, Strategy has issued over $10 billion in related shares to accelerate the acquisition of Bitcoin;The company currently holds 846,842 Bitcoin, worth approximately $53 billion at the time of publication. Saylor stated in April that retail investors hold about 80% of STRC and estimated that approximately 3 million households have invested in the product. Strategy disclosed in the STRC prospectus that the value and liquidity of these preferred shares are subject to market volatility, interest rate fluctuations, the lack of a mature trading market, and their subordinated status relative to the company’s debt. Last month, the company sold 32 Bitcoin to cover the recurring costs of managing STRC and stated that its Bitcoin reserves are sufficient to cover 32 years of dividends.
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