Strategy’s Strife Preferred Falls to Record Low of $91.79
Summary
- Strategy, the world’s largest Bitcoin treasury company, saw its perpetual preferred stock Strife fall to a record low of $91.79.
- Strife has dropped more than 8%% from its $100 par value, lifting its effective dividend yield to about 12.5%% from an 11%% dividend structure.
- The market sees Strategy’s recent Bitcoin purchases as unsustainable for Strife if cash continues to go toward buying Bitcoin rather than dividend payments.
Forecast Trend Report by Period
Strategy’s perpetual preferred stock, Strife, fell to a record low, according to Cointelegraph.
Strife traded at $91.79 on June 16, down about 3.6% from the previous day. That left it more than 8% below its $100 par value.
The decline has been linked to Strategy’s recent Bitcoin purchases. Markus Thielen, chief executive officer of 10x Research, said the market wants the company to hold cash for dividend payments instead of buying more Bitcoin. Investors view Strategy’s latest Bitcoin purchases as an unsustainable direction for Strife, he added.
Strife was designed to offer an 11% dividend based on its $100 par value. But the recent price drop has pushed its effective dividend yield to about 12.5%. Cointelegraph said that suggests Strategy may need to use cash for dividend payments rather than additional Bitcoin purchases.
Strategy said on June 15 that it bought 1,587 more Bitcoin for about $100 million. The company had also purchased about $100 million worth of Bitcoin the previous week.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
