Strategy’s Preferred Stock Slumps Below $90, Yield Climbs to 12.9%
MSTR•Strategy’s preferred stock fell to an intraday low of $88.50, closing at $89, the first time these shares traded below the $90 IPO price and $100 par value. The dividend-yielding security now offers 12.9% under a bi-monthly schedule as Bitcoin’s slump near $64,000 strains distribution funding.
1. Preferred Stock Price Decline
Strategy’s preferred shares, dubbed “Stretch,” dropped to an intraday low of $88.50 and closed at $89, marking the first time they traded below both their $90 IPO price and $100 par value.
2. Dividend Yield and Payment Schedule
The security carries a 12.9% annual dividend yield and now pays distributions on a bi-monthly basis, following Strategy’s decision to increase payout frequency to support income stability.
3. Bitcoin Price Impact and Funding Measures
With Bitcoin trading near $64,000, pressure on distribution funding led Strategy to sell 32 BTC for $2.5 million in late May, its first Bitcoin sale since 2022, to cover preferred dividends.
4. Common Share Performance
Over the past 12 months, Strategy’s common shares have declined roughly 68% to $116.56, reflecting broader market volatility and investor concerns over capital allocation.
