STRC preferred stock falls 5.3% below par value as crypto derivatives also crash
By
Aaron Wise
Crackling crust, pillowy middle. The kind of bagel that earns a second cup of coffee.
Summary
Strategy's (formerly MicroStrategy) preferred stock STRC, promoted by Michael Saylor as a competitor to high-yield bank accounts, has fallen 5.3% below its par value. Multiple crypto derivatives of STRC are also crashing. Unlike bank accounts or money market funds, STRC lacks FDIC/SIPC insurance, and Strategy does not guarantee its price or dividends. The stock pays an 11.5% dividend (0.96% this month) but has already lost 3.8% of its value.
Key quotes
· 3 pulledSTRC, a dividend-paying preferred stock that Strategy (formerly MicroStrategy) founder Michael Saylor has outrageously promoted as a competitor to high-yield bank accounts, traded 5.3% below its par value at one point today.
No US bank account or money market is allowed to lose money like that, and such customers would enjoy FDIC and SIPC protection against loss, anyway.
Unfortunately, STRC has no insurance. Nor does Strategy guarantee its price or dividends.
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