Strategy Preferred Stock STRC falls below $99, with cash reserves covering only 6 months of dividends
According to CoinDesk, Strategy perpetual preferred stock STRC (Stretch) fell to a low of $97.11 on Thursday before rebounding to $98.57, failing to maintain its $100 par value. STRC came under pressure mainly due to Bitcoin dropping back to around $73,000, compounded by the ex-dividend date effect.
Recently, Strategy spent $1.5 billion to repurchase zero-coupon convertible bonds maturing in 2029, causing its cash reserves to plummet from about $2.25 billion to $871 million. Based on annual preferred stock dividend obligations of about $1.7 billion, the current cash can only cover roughly six months, far below the previous target of 24 months coverage. Executive Chairman Michael Saylor stated that the company will raise funds by selling Bitcoin, issuing additional shares when the trading price on a certain exchange is above 1.22 times NAV, or continuing to issue STRC, among other methods.
Meanwhile, competitor Strive Asset Management’s perpetual preferred stock SATA remains pegged to its $100 par value, offers about a 13% dividend yield, plans to launch a daily dividend mechanism, and has completely cleared its debts. In the past three months, Strive’s stock price has surged by about 110%, significantly outperforming the 12% gain of a certain exchange and Bitcoin’s 8% gain.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Analyst Gu Jingci: Follow the trend and adapt flexibly
XRP Ledger adds account control feature, enabling enterprises to manage assets offline.
BUZZ - Goldman Sachs says the price cap on cancer drugs has limited impact on Indian hospitals
October 9 – Goldman Sachs pointed out that India's implementation of a 30% profit margin cap on non-scheduled anticancer drugs (link) will have limited impact on hospitals. The report states that, based on preliminary discussions with hospital chain groups, such drugs account for less than 5% of hospital revenue and 2% to 2.5% of operating profit. The report adds that hospitals can offset the losses by slightly adjusting service charges, such as administration fees. According to a government notice, an expert committee will finalize the list of drugs to be brought under regulation. Driven by the anticipated price cap, the share prices of Max Healthcare MAXE.NS, Apollo Hospitals APLH.NS, and Fortis Healthcare FOHE.NS rose by 1.6% to 2.5%. Previously, since September 30, these stocks had collectively declined by 11% to 11.5%. Year-to-date, FOHE and MAXE are down 11.7% and 14.8%, respectively, while APLH has risen by 11%. (To assist non-English speakers, Reuters provides automated translations of its reports into several other languages. Due to potential errors or missing context in automated translations, Reuters does not guarantee the accuracy of automatic translation texts and offers them solely for readers’ convenience. Reuters accepts no responsibility for any damage or loss caused by using these automated translation features.)
Adding insult to injury! Japanese electronics giant Nidec downgraded by UBS, stock price plunges over 9% and approaches an 11-month low
UBS has downgraded Nidec's rating from "Buy" to "Neutral" and lowered its target price from 2,800 yen to 2,400 yen, citing a more challenging market environment.
Crypto prices
More
