Strategy preferred shares reach par value…"Green light for additional fundraising"

Strategy's perpetual preferred stock 'STRC' reaching par value has led to claims that Chairman Michael Saylor's Bitcoin (BTC) purchasing strategy has entered a new stage.

On the 6th (local time), according to CoinDesk, STRC's intraday price hit an all-time high of 100.10 dollars, and trading volume surpassed 1,000,000 shares. With STRC trading at par value (100 dollars), the company can restart its 'at-the-market (ATM)' program backed by it. Through this, up to 4.2 billion dollars of new equity issuance funding is expected to be secured.

STRC is a short-term, high-yield credit product issued by Strategy that offers an annual 10.5% yield and pays cash dividends monthly. The company set up an ATM program for the product on July 31, but issuance was halted as the share price traded below par. After raising the dividend rate from the previous 9% to attract market demand, it succeeded in restoring par value.

According to company filings, there remains issuance capacity of 4.2 billion dollars, and STRC is expected to be used as a primary means to raise funds for future Bitcoin purchases.

Strategy has already continued purchasing Bitcoin through offerings of three other perpetual preferred stocks — STRK, STFR, STRD — as well as common stock offerings. The company currently holds about 641,000 bitcoins, the largest amount among companies.

This year, Strategy's common stock (MSTR) has fallen about 15% and is trading around 253 dollars. However, with the market net asset value multiple (mNAV) holding around 1.3, there is an assessment that Chairman Saylor has secured room to expand Bitcoin holdings in a non-dilutive way.