Stretch (STRC), the perpetual preferred stock issued by Strategy (MSTR), the world’s largest corporate bitcoin holder, regained its $100 par value during Wednesday’s US session for the first time since mid-January.
STRC trading at or above par allows the company to resume at-the-market (ATM) offerings to fund additional bitcoin purchases. STRC last hit the $100 level on January 16, when bitcoin hovered near $97,000; but as the largest cryptocurrency by market capitalization retreated to as low as $60,000 on February 5, STRC fell to a low of $93 before its recent rally.
Positioned as a short-term, high-yield credit instrument, STRC currently offers an annualized dividend of 11.25% monthly. To mitigate volatility and encourage trading close to par, the Strategy resets this rate monthly and recently raised it to the current yield of 11.25%.
MSTR common stock faced pressure, falling 5% Wednesday to close at $126 as bitcoin hovers around $67,500.
