Stretch (STRC), a perpetual preferred stock issued by Strategy (MSTR), the largest corporate holder of Bitcoin reclaimed $100 in pre-market trading for the first time since early November, opening the door to the sale of more BTC to fund the sale.
STRC last traded at this level between November 4 and 13 before falling to lows near $90. Once par value is restored, Strategy will be able to issue shares through an offering on the product-linked market (ATM).
The stock is called short-term high-yield credit. The company currently pays an 11% annual dividend, paid out in cash every month. The dividend rate resets monthly to encourage trading around the $100 par value and help reduce price volatility.
Since its inception, STRC has gained 16%, with an effective yield of approximately 11%. The annualized yield is calculated as the current dividend divided by the STRC share price.
MSTR increased STRC’s dividend yield to 11% at the beginning of the year, the fifth dividend increase since the product’s launch in July. The company’s common stock rose 4% to $165 in premarket trading, while STRC rose 0.03% to $100.