During Thursday’s trading session, Stretch (STRC), the perpetual preferred equity from Strategy (MSTR)—the largest corporate bitcoin holder globally—successfully regained its $100 par value. This resurgence provides the company with the flexibility to secure additional funding for expanding its cryptocurrency reserves.
The recovery process took nine trading days following the ex-dividend date on March 13, which marked a point when new stock buyers were no longer eligible for upcoming payouts. Typically, stocks that go ex-dividend experience a price drop to account for cash distributions made to prior shareholders.
At its essence, STRC operates by modifying yield in order to influence pricing. If shares are traded above $100, the company may reduce dividends to temper demand. Conversely, if prices dip below this threshold, it can increase dividends to draw in more investors. By stabilizing the share price around par value, Strategy can issue new shares at or near this level and utilize that capital for further bitcoin purchases.
This recent return to par occurred slightly quicker than STRC’s historical average of approximately ten trading days as noted by STRC.live.
STRC serves as a short-term high-yield credit instrument with an annual dividend rate of 11.5%, disbursed monthly. This design encourages trading close to its $100 par value and allows the firm to employ at-the-market (ATM) share issuance strategies for raising funds aimed at acquiring more bitcoins.
In contrast, SATA—the similar financial tool provided by Strive (ASST), a bitcoin treasury firm—offers an even higher dividend rate of 12.75%. Currently priced at $99.25, it is also nearing its par value.
Last week alone, Strategy purchased 1,031 bitcoins totaling approximately $76.6 million or about $74,326 per coin; however this acquisition was significantly smaller compared to previous purchases and occurred while STRC was not yet back at par during that time frame.
The company’s total holdings now amount to 762,099 bitcoins acquired for roughly $57.69 billion overall—a striking average cost of about $75,694 per bitcoin.
Read more: Michael Saylor’s Strategy dominates DAT bitcoin buying as treasury demand collapses