Strategy’s perpetual preferred stock, Stretch (STRC), continues to trade below its $100 par value despite the company’s ongoing repurchase efforts.
The bitcoin treasury company has spent $635.2 million buying back STRC, which currently trades at $97.34. Strategy introduced a $1 billion repurchase authorization that helped lift STRC from a low of approximately $71 to about $97.
Strategy expands STRC buybacks
Strategy’s repurchases have increased in size as STRC’s price has risen. The company’s latest purchase totaled $151.8 million at an average price of $97.48.
Strategy also purchased bitcoin for the first time in two months, acquiring 4,603 BTC for $369.7 million last week at approximately $80,000 per bitcoin. The purchase increased Strategy’s total holdings to 845,050 BTC, valued at $65.9 billion.
Strive’s SATA preferred stock adds pressure
Competition from Strive’s perpetual preferred stock, SATA, appears to be one of the challenges facing STRC. SATA offers a 13% annualized dividend rate with daily payments, compared with STRC’s 12% annualized rate paid semi-monthly.
SATA has remained near its $100 par value for more than a week, allowing Strive to issue additional shares through its at-the-market program. The proceeds helped fund the company’s purchase of 1,800 BTC over the past week.
The divergence is also visible in the companies’ common shares. Strive’s ASST has gained 60% year to date, while Strategy’s MSTR has fallen 15%.
Source: cryptonews.net
