Strategy Inc Preferred Shares Trade 27% Below Par with 15% Yield Ahead of Dividend Reset
STRC•On June 30, STRC's preferred shares will trade ex-dividend, resetting the dividend from 11.5% and triggering a $0.48 payment on July 15. Shares trade near $73, 27% below $100 par, pushing yield to 15% as scrutiny grows over Strategy’s $13B unrealized Bitcoin loss and preferred issuance.
1. Ex-Dividend Date and Dividend Details
STRC’s preferred shares go ex-dividend on June 30, triggering a dividend rate reset from 11.5%. Shareholders of record will receive a semi-monthly payment of $0.48 on July 15.
2. Share Price and Yield
STRC shares are trading near $73, about 27% below the $100 par value, which has increased the effective yield to roughly 15%. This discounted pricing reflects investor expectations for a higher reset rate to align with market yields.
3. Funding Model Scrutiny
Brad Garlinghouse criticized the reliance on preferred share issuance to finance Bitcoin purchases as financial engineering and cited the sub-par trading price as evidence of waning investor confidence.
4. Bitcoin Accumulation and Losses
Strategy holds about 844,000 Bitcoin acquired at an average price of $75,600 per coin. With Bitcoin trading near $60,240, these positions have generated more than $13 billion in unrealized losses, a figure that exceeds the market capitalizations of several notable altcoins.
