STRC Calculator Produces $210 Price Based on Select Assumptions

The STRC calculator produced an illustrative price of $210.90 for Strategy's perpetual preferred stock on October 2, while displaying a market-price input of $99.50. The issuer retains the option to redeem shares at $101, or a higher amount it chooses, plus applicable unpaid dividends.

The calculation is based on a formula that divides the annual dividend by the sum of the risk-free yield and BTC Credit, Strategy's modeled credit spread. Using a $12 annual dividend and the displayed inputs gives an output of approximately $210.90.

However, this does not mean that the market price differs from the calculation due to the call right. The entire gap cannot be assigned to the call right, as issuer options, payment risk, trading conditions, and the model's assumptions all affect the comparison.