Stretch (STRC), the perpetual preferred stock issued by Strategy (MSTR), the largest corporate owner of bitcoin regained $100 in pre-market trading for the first time since early November, opening the door for selling to fund more BTC purchases.
STRC last traded at that level between November 4th and November 13th before falling to a low near $90. The return at par allows Strategy to issue shares through ATM offers linked to the product.
The equity is labeled as short-term high-yield credit. It currently pays an 11% annual dividend that is paid monthly in cash. The dividend rate resets monthly to encourage trading around the $100 face value and to help reduce price volatility.
Since inception, STRC is up 16% and offers an effective yield of around 11%. The annual return is calculated as the current dividend divided by the STRC share price.
MSTR raised the dividend rate on STRC to 11% at the start of the year, marking the fifth dividend increase since the product was introduced in July. The company’s common stock is up 4% in pre-market trading at $165, while STRC is up 0.03% at $100.
