STRC perpetual preferred stock from Strategy hits $100, could ignite further Bitcoin buying.

Strategy’s STRC Preferred Stock Reaches $100, Could Fund More Bitcoin Purchases

Strategy’s (MSTR) perpetual preferred equity, STRC, climbed back to $100 in pre-market trading, its first time at that level since early November, potentially unlocking capital for additional Bitcoin (BTC $90,637) purchases.

The short-duration, high-yield credit product last traded at par between Nov. 4 and Nov. 13 before falling to roughly $90. With STRC back at $100, Strategy can issue shares via at-the-market (ATM) offerings, providing funds to expand its Bitcoin holdings.

STRC pays an 11% annual dividend, distributed monthly, with rates adjusted monthly to encourage trading near par and limit price swings. Since its July debut, STRC has risen 16%, offering an effective yield of around 11%.

This year marks the fifth dividend increase for STRC, with the rate raised to 11% in January. In pre-market trading, Strategy’s common stock rose 4% to $165, while STRC edged up slightly to $100.