WORLDTECHStrategy's STRC preferred regains $100 par after buybacks
Shares of STRC, a preferred stock issued by bitcoin treasury company Strategy, reached $100 on Wednesday for the first time since May, according to reports from independent outlets. The rise came only days after the company started paying dividends daily.
Buybacks behind the return to par
The recovery followed roughly $2.25 billion of buybacks, which brought the preferred back to the minimum price Strategy has set for issuing new shares. Bitcoin Magazine connected the rebound to buybacks exceeding $2 billion, alongside a 12% dividend rate.
Bitcoin Magazine also tied the move to rate increases the company has made over recent months as it sought to defend the par value.
Earlier slide below stated value
STRC fell below $80 at times in June, a wide discount to its stated value. Chairman Michael Saylor had committed to keeping the shares at or above par and to holding the dividend at 12% until that goal was met.
Recent changes to dividend payments
Two changes arrived within the past week. Shareholders approved daily dividends on STRC and three other preferred stocks on October, and daily payouts began shortly afterward.
Open questions
- Will STRC hold above $100 now that daily dividends are being paid?