Strategy's STRC preferred stock touched $100 on Nov. 4 for the first time since May. That matches the minimum price the bitcoin treasury company says it requires before issuing new shares. The market touching $100 does not mean Strategy has resumed issuance.
Strategy's STRC preferred stock touched $100 on Nov. 4, its first visit to that level since May. The price matches the floor the bitcoin treasury company sets for itself before selling new shares.
Yahoo Finance's intraday data showed STRC reaching $100 at about 12:38 p.m. ET, and the daily history showed May 14 as the last earlier session at or above that level. The security was quoted at $99.99 at 12:44 p.m. ET.
Why the $100 level matters
Strategy's latest quarterly filing says its policy is not to issue STRC below its $100 stated amount. New sales at $100 would comply with that policy, but the filing does not show that Strategy has restarted them.
The channel previously ran at scale. Strategy used $5.46 billion of STRC proceeds to buy bitcoin in the second quarter, but it sold no STRC through its at-the-market program in the third quarter.
Buybacks followed a June low
The recovery follows a June selloff. Yahoo's history records a $71.25 intraday low on June 26.
Strategy began repurchasing STRC in July. The company said its purchases would generally be larger at deeper discounts and taper as the stock approached $100. Together, two disclosures put repurchases at roughly $2.25 billion through Nov. 1, according to The Defiant's calculation. Crypto Briefing separately reports that management also kept a cash reserve of $4 billion.
No new issuance yet
Strategy's Nov. 2 filing showed no STRC issuance during the latest weekly period and $17.51 billion remaining available for issuance and sale. The company instead paid for 811 bitcoin, costing $65.5 million, with proceeds from sales of MSTR common stock.
STRC's November terms set the annualized dividend rate at 12%, subject to board declaration. Management's stated policy is not to recommend changing that rate until STRC trades at or near $100 on a sustained basis.
Sources: The Defiant, Crypto Briefing
Trading involves risk.
Risk Disclaimer
