STRC Preferred Stock Struggles to Reach Stated Value Amid Bitcoin Rally

STRC preferred stock has struggled to reach its stated value of $100 despite Bitcoin's recent rally to nearly $78,000. According to Multicoin Capital co-founder Tushar Jain, the 12% dividend paid by STRC is not enough to compensate investors for the risk of another deep drawdown.

Jain argued that if Strategy's CEO, Phong Le, were to raise the dividend again to try and get STRC back to its stated value, it would increase the company's recurring cash needs substantially.

STRC currently pays a 12% annualized dividend split into two monthly payments of $0.50 per share. At the current market price of $95.31, this works out to an effective yield of about 12.6%.