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