Strategy Doubles Down On Its Aggressive Defense Of 12.6% Yielding STRC

Strategy has aggressively defended its STRC preferreds, restoring prices close to the $100 per share redemption anchor after a deep 25% discount in June. STRC now offers a 13.6% dividend yield, about 900 basis points above the 10-year Treasury, reflecting its unique risk profile. MSTR’s $63 billion liquidity wall, from USD reserves and BTC holdings, underpins ongoing STRC repurchases and dividend stability. I maintain a Hold rating on STRC on the back of its high yield and the recent defensive actions. The security is speculative, and liabilities are material.

Strategy's ( MSTR ) aggressive defense of its Variable Rate Series A Perpetual Stretch Preferreds ( STRC ) means it's hard to see a future where the price of the security becomes as materially unanchored from