NewsHK
Against a backdrop of risk repricing across hybrid capital instruments, Strategy has declined to offer holders of its preferred STRC shares any extra compensation for the gap.
The company left the STRC dividend unchanged at 12%, holding the rate even as the preferred shares continue to trade below their $100 par value.
The payout trigger that was not pulled STRC's structure carries a precedent worth noting. When shares traded well below the $100 par value for a month, investors previously received a payout boost.
Strategy chose not to activate it. A 12% coupon reads as generous across most rate environments. But yield stated at par is not the same yield earned by a buyer acquiring shares below par in the secondary market.
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