Strategy (MSTR) stock falls 8% as STRC preferred stock drops 25% below par, shaking investor confidence
By
James Van Straten
2h ago· 3 min readenNews
Summary
Strategy (MSTR) stock is falling amid concerns about its ability to meet dividend obligations on its STRC perpetual preferred stock. However, the company still has 10 months of dollar reserves to cover dividends. The real issue is the collapse of investor confidence, as STRC has fallen to a 25% discount from its $100 par value, undermining trust in what was marketed as a low-volatility income product.
Source
bskyStrategy (MSTR) stock falls 8% as STRC preferred stock drops 25% below par, shaking investor confidencecoindesk.comKey quotes
· 3 pulledMichael Saylor's bitcoin BTC$59,501.25 treasury firm still has 10 months of dollar reserves available to cover STRC's dividend obligations, so the greater concern is what it has done to investor confidence.
STRC, the perpetual preferred stock meant to hold a $100 par value, has continued its collapse to $75, a 25% discount to its peg.
STRC was marketed as a low volatility income product designed to trade near $100, and its sharp decline has undermined investor trust.
STRC was marketed as a low volatility income product designed to trade near $100, and its sharp decline has undermined investor trust.
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