Strategy’s STRC Perpetual Preferred Share Hits $100.10, Unlocking $4.2B for Bitcoin Purchases
Michael Saylor’s Strategy used its STRC preferred stock at-the-market program for the first time to acquire 487 bitcoin, highlighting shifting capital-raising tactics amid common share price pressures.
Strategy (MSTR) purchased 487 bitcoin for $49.9 million last week, bringing total holdings to 641,692 coins valued at more than $68 billion at current prices. The buy was funded partly by $26.2 million raised through the company’s at-the-market program for its short-duration, high-yield STRC “Stretch” preferred shares—its first time using this method—now offering a 10.5% annualized dividend paid monthly. Additional capital came from the STRF “Strife” preferred series. MSTR’s common shares have fallen sharply in recent months as their prior premium over net bitcoin value disappeared, a development previously highlighted by short-seller Jim Chanos, who has now closed his position. Following news of the purchase and a weekend rise in bitcoin above $106,000, MSTR shares gained 3.2% premarket.
- Preferred stock: A class of ownership in a corporation with a fixed dividend, typically ranked above common stock in terms of claims on assets.
- At-the-market offering: A method of selling shares directly into the public markets over time at prevailing market prices.
- Bitcoin (BTC): A decentralized digital currency operating on a peer-to-peer blockchain network, widely used as a store of value and medium of exchange.