Strategy · Bitcoin · CryptoSlate
Strategy’s $10 billion STRC Bitcoin yield product sinks to yearly low as market demands higher payout
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Strategy’s (formerly MicroStrategy) flagship dividend-paying preferred stock is trading at its weakest level this year, pressuring one of the company’s most important tools for raising capital to buy Bitcoin.
Key facts
- Over the past year, STRC has expanded from $2.8 billion to $10.5 billion, adding $7.7 billion through at-the-market issuance
- White has argued that the company could stabilize the product by raising the dividend to 12%, calling a shareholder vote to move to daily payments, increasing the call price from $101 to at least
- The $10.5 billion variable-rate perpetual preferred stock, which trades under the ticker STRC, closed Tuesday at $91.79
- Strive’s bitcoin-backed preferred stock, SATA, has continued to trade close to its $100 par value while offering a higher annualized payout of about 13%
Summary
01 Strategy’s STRC preferred stock closed at $91.79, its weakest level this year and far below the intended $100 anchor. 02 The drop pressures a key capital-raising channel for buying Bitcoin, as investors now demand about a 12.6% yield. 03 Management may need to raise the dividend or change terms, but each fix adds costs and could slow Bitcoin purchases. The $10.5 billion variable-rate perpetual preferred stock, which trades under the ticker STRC, closed Tuesday at $91.79.