Strategy Preferred Shares Return to Par… "Groundwork for Additional Bitcoin Buying"

Stretch, the preferred share of Strategy, the world’s largest Bitcoin (BTC) treasury company, has recovered to its par value for the first time in about a month.

According to CoinDesk on the 12th (local time), Stretch traded above its $100 par value in the U.S. stock market the previous day (11th). It marked the first time since mid-last month—about a month ago—that Stretch returned to par. Earlier this month, as Bitcoin slid sharply to the low-$60,000 range, Stretch fell to as low as $93.

Analysts say this also increases the likelihood that Strategy can raise additional funds. Strategy typically sells its own shares into the market through an “at-the-market” (ATM) equity issuance program to secure cash, and then uses the proceeds to purchase Bitcoin. CoinDesk reported that “with Stretch back at par, Strategy can resume its ATM,” adding that “the door has opened for additional Bitcoin purchases by Strategy.”

Meanwhile, earlier this month Strategy raised Stretch’s annual dividend rate by 0.25 percentage point, to 11.25% from 11%.