Another piece of strategy (MSTR) executive chairman Michael Saylor’s Playbook looks set to develop after the Company’s Perpetual Preferred Share, Stretch (Strc), press a Record high of $100.10 with trading volume reaching 1 million shares.
The milestone is significant because it allows the strategy, the largest holder of bitcoin to use the at-the-market (ATM) offering against STRC to buy more of the largest cryptocurrency. STRC, described by the company As a short duration, high-yield credit instrument, currently offering an annual 10.5% return, paid monthly in cash.
ATM, which was established on July 31, was held because the instrument was not trading at par. The company raised STRC’s dividend rate, initially to 9%, to help push the trading price toward the $100 par value. According to the latest 8-K Filingthe company has $4.2 billion in available capacity for share issuance.
The strategy used ATM sales of Perpetual’s other three preferred products –Strk, STFR and STRD — as well as its common stock to fund bitcoin purchases.
MSTR common shares have fallen 15% this year to around $253. With a multiple to net asset value (MNAV) running near 1.3, Saylor’s ability to issue Perpetual preferred stock successfully will be key to continuing the company’s bitcoin accumulation in a non-dilutive manner.
STRC was up 0.5% in pre-market trading at $100.50 per share, while MSTR was down 1%.
