Strategy's STRC Dips 3.6% Amid Bitcoin Buying Doubts

Strategy’s perpetual preferred stock STRC slid toward record lows Tuesday as Michael Saylor’s variable-rate perpetual “Stretch” Bitcoin yield product fell 3.58% to $91.79, roughly 8.2% below its $100 target. Markus Thielen, CEO of 10x Research, linked the move to Strategy’s recent Bitcoin buying: "The market would rather see [Strategy] not acquiring more BTC and rather keep the cash for dividend payments," he said.

"It appears traders are seeing the latest BTC acquisition as an unsustainable path for STRC." Stretch is designed to return an 11.5% dividend at a $100 par value, but the drop has pushed the effective yield to 12.5%, increasing pressure to preserve cash for payouts instead of further BTC purchases.

Last week Strategy bought 1,587 Bitcoin for around $100 million and the prior week added 1,550 BTC for about $100 million, bringing its holdings to 846,842 Bitcoin.

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