STRC preferred stock investors are mispricing major 'dislocation' risk: Analyst
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- Strategy’s analyst warns that investors are mispricing a major “dislocation” risk in its perpetual preferred stock, especially if spreads rise and liquidity dries up.
- STRC daily trading volume hit a record $1.5 billion on Thursday, reflecting soaring demand as the firm leans on preferred stock to fund Bitcoin purchases.
- Delphi Digital notes the authorized issuance cap for STRC is $28 billion; if the cap isn’t raised before hitting that level, Strategy’s BTC accumulation is at risk of slowing.
- STRC has $8.5 billion of notional face value outstanding and trades at about $99 per share with a variable dividend rate of 11.5% per month.
- SaylorTracker reports that Strategy opened voting for common equity and STRC holders to approve semi‑monthly dividend payments.
Why it matters: Investors in STRC face sudden yield drops if spreads widen, while Strategy’s BTC accumulation is at risk of slowing if the $28 billion cap isn’t raised, limiting its crypto exposure.
