Strategy's Stretch Hits New Lows After Bitcoin Buying Spree
Strategy's perpetual preferred stock, Stretch (STRC), took a hit on June 16 after closing at $91.79, down 3.58% from the previous day. This marks one of the weakest levels for the stock since its launch.
The decline comes after Strategy purchased two rounds of Bitcoin, bringing their total holdings to 846,842 BTC. The recent buying pace has raised concerns among investors about yield pressure and capital structure.
Markus Thielen, CEO of 10x Research, stated that the market would prefer Strategy direct its cash toward dividend payments rather than additional BTC purchases. He believes traders view the recent buying pace as unsustainable for the preferred stock.
Nick Ruck, director of LVRG Research, attributed a separate factor to the decline: risk-off sentiment across crypto markets has reduced investor appetite for the stock, and concerns over Strategy's expanding capital structure and at-the-market share issuance are testing its ability to hold near par value.