Strategy seeks shareholder approval for daily preferred stock dividends — SkimNews
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- STRC, Strategy's preferred security and a key part of its "digital credit" strategy, fell sharply in June to an intraday low of $71.25 on June 26, well below its $100 stated amount, per Yahoo Finance data.
- Strategy CEO Phong Le told Natalie Brunell's Coin Stories podcast that more leverage entered the STRC market than the company anticipated, with some investors borrowing against Bitcoin at lower rates to capture the spread between their borrowing costs and STRC's dividend yield.
- Le said that when Bitcoin's price fell, leveraged STRC holders faced pressure to add more collateral or sell the security — a dynamic he called a "lesson learned" for the company.
- Strategy plans to prevent another such unwind by maintaining a strong US dollar reserve and a policy allowing repurchases of STRC when it trades below its $100 stated amount, aiming to attract more long-term, particularly institutional, holders.
- STRC has since recovered to about $98.41, close to the company's $99–$100 target range, and currently carries a 12% variable annual dividend rate.
Why it matters: STRC trades roughly $1.59 below par after a leveraged-driven crash from $71.25 to $98.41 in months, showing how Bitcoin-collateralized borrowing can amplify losses in yield instruments built on the company's treasury. Strategy's buyback policy and USD reserve represent a concrete stabilization template the firm says will be needed as it pushes for institutional holders.
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