Strategy’s perpetual preferred stock, dubbed “Stretch” (STRC), achieved its seventh-highest daily trading volume on Wednesday, with approximately $333 million exchanging hands. Despite this significant activity, STRC maintained remarkable stability, trading within a mere one-cent range around its $100 par value.
This stability is attributed to STRC’s design as a high-yield credit instrument, offering an 11.5% annual dividend. The structure encourages trading near par, facilitating Strategy's use of its at-the-market issuance program to acquire more bitcoin. Estimates suggest over 2,000 BTC may have been purchased on Wednesday through this mechanism. STRC aims to deliver consistent, double-digit returns with minimal price fluctuation, balancing income generation with capital preservation. In pre-market trading, Strategy shares were slightly down, while STRC held steady at par.