Stretch (STRC), the perpetual preferred stock issued by Strategy (MSTR), the largest Bitcoin holding company reclaimed $100 in the pre-market for the first time since early November, opening the door for sales to fund more BTC purchases.
STRC last traded at this level between November 4 and 13, before falling to a low near $90. The return to par allows Strategy to issue shares via at-the-market (ATM) offerings linked to the product.
Stocks are referred to as short-term, high-yielding credit. It currently pays an 11% annual dividend, distributed monthly in cash. The dividend rate is reset monthly to encourage trading around the $100 par value and to help reduce price volatility.
Since its inception, STRC has grown 16% and provides an effective return of approximately 11%. The annualized yield is calculated as the current dividend divided by the STRC stock price.
MSTR increased STRC’s dividend rate to 11% earlier this year, marking the fifth dividend increase since the product was introduced in July. The company’s common shares are up 4% in pre-market trading at $165, while STRC is up 0.03% at $100.
