Strategy adds 1,587 BTC as STRC falls to record low near $86
Bitcoin holdings rose to 846,842 BTC after a roughly $100 million purchase, while STRC slid to a new low of $82.53 and its yield reached about 11.5%, sharpening scrutiny of dividend costs and Strategy’s Bitcoin-funded financing model.
Strategy, formerly MicroStrategy, said it bought 1,587 BTC for about $100 million between June 8 and June 14, bringing its holdings to 846,842 BTC acquired for about $64.07 billion. At the same time, its Variable Rate Series A Perpetual Stretch Preferred Stock, STRC, fell to a new low of $82.53 on Tuesday, its lowest since listing last July, lifting its annualized dividend yield to about 11.5% and deepening its discount to par. Strategy has issued more than $10 billion of the shares to help accelerate Bitcoin purchases and now holds about $53 billion worth of BTC. The company also said last month it sold 32 BTC to cover recurring STRC costs, reinforcing investor focus on cash liquidity, dividend coverage and the sustainability of Strategy’s Bitcoin-backed financing model.
- preferred stock: A class of shares that typically pays dividends and ranks ahead of common stock in claims on income and assets.
- annualized dividend yield: The yearly dividend income implied by current payouts, expressed as a percentage of the security’s market price.
- par value: The face or issue value of a security, used as a benchmark for whether it is trading at a premium or discount.