Strategy (MSTR) has announced the upcoming placement of its preferred shares known as Stretch (STRC) at a price of $90 per share.
Overview of Share Placement
Strategy has announced a placement of 28,011,111 Stretch (STRC) shares, estimated to raise about $2.474 billion after commissions and fees. The closing of the placement is expected on July 29. The price of $90 is set at the lower end of the intended selling range, originally pegged at $100.
Features of Stretch (STRC) Shares
STRC shares will accumulate dividends at a variable rate, with an initial monthly dividend set at 9% annualized. This rate may be adjusted at the discretion of Strategy's board. These shares will be utilized for acquiring more BTC and for the company's working capital.
Market and Current MSTR Share Prices
Despite recent fluctuations in BTC prices, MSTR shares continue to trade above $406. Preferred shares STRK, STRF, and STRD are also showing steady demand. STRC is not backed by underlying BTC, which restricts its attractiveness to some investors, but the strategy assumes growing interest in BTC may increase the appeal of the new shares.
The placement of Stretch (STRC) shares by Strategy, in addition to its flexibility in equity capital, may represent an interesting opportunity for retail investors seeking stable income from cryptocurrency investments.
