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