MSCI delisting put on hold… Strategy preferred shares recover to the $100 range after two months

The preferred shares 'Stretch' of Strategy, the world's largest Bitcoin (BTC) treasury company, have recovered to the $100 range after two months.

According to CoinDesk on the 7th (local time), Stretch traded above $100 in pre-market trading that day. CoinDesk said, "This is the first time Stretch has recovered to $100 since early November of last year," and reported that "(Strategy) has opened the possibility of selling to raise funds for additional Bitcoin purchases."

The rise in Stretch's price was because Morgan Stanley Capital International (MSCI) decided on the previous day (the 6th) to continue including Strategy and other Digital Asset Treasury (DAT) companies in its major indexes. MSCI had warned in the latter half of last year that it could remove DAT companies from major indexes by changing index inclusion criteria starting from the February rebalancing this year.

In this regard, Michael Saylor, CEO of Strategy, said, "(MSCI's) decision to maintain inclusion is a great outcome that considers neutral index calculation and economic reality."

Stretch is a perpetual preferred share issued by Strategy in July last year. It currently pays an annual 11% dividend in cash monthly. CoinDesk said, "The dividend rate is readjusted monthly," and "Stretch has risen 16% since issuance, and the effective dividend yield is about 11%."