TLDR: STRC has dropped to $76.20, approximately 25% below its $100 par value, alarming income-focused investors. Strategy owes $1.2 billion annually in STRC dividends but holds only $1.4 billion in USD reserves currently. Unlike Terra LUNA, Saylor faces no forced liquidation if S...
- MicroStrategy's preferred stock (STRC) has fallen 25% below its $100 par value, raising concerns among income-focused investors.
- While STRC shares similarities to Terra's LUNA in terms of high yield and price depreciation, key structural differences, such as the discretionary nature of dividends, prevent a direct 'depeg' comparison.
- The sustained discount on STRC could impact MicroStrategy's ability to fund its Bitcoin accumulation strategy by potentially weakening demand for its common stock.
Topics: Asset types, Yield performance, Risk default, Bond, Private credit high yield, Credit counterparty risk
Tags: #strc #microstrategy #preferredstock #dividend #parvalue #luna #terra #arkham #yield #bitcoin
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