Strategy's Saylor Acknowledges 'Volatility Test' as STRC Hits New Low on Bitcoin Weakness
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Strategy's Saylor Acknowledges 'Volatility Test' as STRC Hits New Low on Bitcoin Weakness
At Bitcoin's recent price, Strategy's stockpile of 847,363 BTC was worth close to $51 billion, or around $13.1 billion underwater.
'Stop Buying Bitcoin': Strategy Needs More Cash Fast, Analyst Says as STRC Hits New Low
Nic Carter, founding partner of investment firm Castle Island Ventures, posited in an X post on Thursday that Strategy will need to hike STRC's dividend for an eighth time since its introduction, assessing the product through the lens of a junk bond investor.
Although STRC currently offers an 11.5% annual dividend, the implied yield becomes higher for investors as it drifts further away from its $100 par value. At its current level, investors are essentially demanding more than 15% returns to gain exposure to the product.
"Because the structure is unsustainable and requires the perpetual monetization of the common equity, which is trading near par," he added, "it will continue to trade at a discount unless Strategy hikes the yield on STRC to the appropriate range, which is 15-20% in my opinion."
This article has been published in decrypt.co via Yahoo News.
Strategy's Saylor Acknowledges 'Volatility Test' as STRC Hits New Low on Bitcoin Weakness
Strategy’s flagship preferred stock tumbled again when U.S. markets opened, setting another record low as Bitcoin lingered below $60,000.
finance.yahoo.com
