TechFlow News, May 29: According to CoinDesk, Strategy’s perpetual preferred stock STRC (Stretch) fell as low as $97.11 on Thursday before rebounding to $98.57, failing to sustain its $100 par value. STRC’s pressure stems primarily from Bitcoin’s retreat to around $73,000, compounded by the ex-dividend date effect.
Recently, Strategy spent $1.5 billion repurchasing its zero-coupon convertible bonds maturing in 2029, causing its cash reserves to plummet from approximately $2.25 billion to $871 million. With annual preferred-stock dividend obligations totaling roughly $1.7 billion, the company’s current cash position covers only about six months—far below its previously stated target of 24 months’ coverage. Executive Chairman Michael Saylor stated that the company plans to raise funds through Bitcoin sales, issuing additional shares when MSTR’s share price trades above 1.22x its net asset value (NAV), or continuing to issue STRC.
Meanwhile, competitor Strive Asset Management’s perpetual preferred stock SATA has consistently traded at its $100 par value, offering an approximate 13% dividend yield. Strive also plans to introduce a daily dividend mechanism and has fully eliminated its debt. Over the past three months, Strive’s stock price has risen approximately 110%, significantly outperforming both MSTR’s 12% gain and Bitcoin’s 8% increase.
