“The perpetual preferred STRC hits $100 par amid bitcoin downturn, enabling potential further BTC purchases for the company.”, — write: www.coindesk.com
STRC trading at or above par enables the company to resume at-the-market (ATM) offerings to fund further bitcoin acquisitions. STRC last hit the $100 level on Jan. 16 when bitcoin hovered near $97,000; however, as the largest cryptocurrency by market capitalization retreated to as low as $60,000 by on Feb. 5, STRC dipped to a low of $93 before its recent rebound.
Positioned as a short-duration, high-yield credit instrument, STRC currently offers an 11.25% annual dividend distributed monthly. To mitigate volatility and incentivize trading near par, Strategy resets this rate monthly, recently hiking it to the current 11.25% yield.
MSTR common stock faced pressure, sliding 5% on Wednesday to close at $126, as bitcoin hovers around $67,500.
The Feb. 5 shock booked the largest-ever realized loss — $3.2 billion — in bitcoin history.
- The Feb. 5 crash in bitcoin saw $3.2 billion in realized losses, officially overtaking the 2022 Terra Luna collapse as the single largest loss event in bitcoin’s history.
- According to the checkonchain data platform, daily net losses exceeded $1.5 billion.
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