What is Strategy's STRC preferred stock?

STRC is a preferred stock issued by Strategy (formerly MicroStrategy) that pays a fixed monthly dividend. It was designed to give equity-like exposure to the company's Bitcoin strategy with a yield component.

Why is STRC trading below its $100 par value?

STRC has spent time below par since launch as secondary-market supply and demand have pushed the price under the $100 redemption level. Samson Mow argues the resulting yield adjustment is a feature, not a bug.

What is the "self-repairing mechanism" Mow described?

As STRC's price drops, the fixed dividend becomes a higher effective yield, attracting income-focused buyers. The discount to par also creates a capital-gain incentive for holders buying below $100, which together pull the price back toward par without issuer action.

Does STRC's discount affect dividend payments?

According to Mow, the discount in the secondary market does not affect the dividend payout. Dividends are set by the instrument's terms, not by where the price trades.

Samson Mow is the CEO of JAN3, a Bitcoin-focused company, and a long-time advocate for sovereign and corporate Bitcoin adoption. He frequently comments on Strategy's capital structure and BTC treasury strategy.

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WuBlockchain

Samson Mow defends STRC's pull-to-par mechanism below $100

JAN3's CEO argues the preferred stock's built-in yield adjustment and capital-gain incentive make the discount self-correcting, no issuer intervention required.

Zipp Editorial Aggregated from WuBlockchain

Samson Mow defends STRC's pull-to-par mechanism below $100

JAN3 CEO Samson Mow pushed back on concerns about Strategy's STRC preferred stock trading below its $100 par value, saying the instrument carries a built-in self-correcting feature that kicks in when the price slips.

The mechanism works on two layers: as the price drops, the fixed dividend represents a larger effective yield, which draws income-focused buyers back in. At the same time, the discount to par creates an implicit capital-gain incentive for anyone buying below $100 and holding to redemption, pulling the price back up without Strategy having to step in.

Mow argued the dividend payout is unaffected by where STRC trades in the secondary market and called the instrument "working perfectly as designed."

$STRC #MicroStrategy #PreferredStock #Yield

Frequently asked questions

What is Strategy's STRC preferred stock?

STRC is a preferred stock issued by Strategy (formerly MicroStrategy) that pays a fixed monthly dividend. It was designed to give equity-like exposure to the company's Bitcoin strategy with a yield component.
Why is STRC trading below its $100 par value?

STRC has spent time below par since launch as secondary-market supply and demand have pushed the price under the $100 redemption level. Samson Mow argues the resulting yield adjustment is a feature, not a bug.
What is the "self-repairing mechanism" Mow described?

As STRC's price drops, the fixed dividend becomes a higher effective yield, attracting income-focused buyers. The discount to par also creates a capital-gain incentive for holders buying below $100, which together pull the price back toward par without issuer action.
Does STRC's discount affect dividend payments?

According to Mow, the discount in the secondary market does not affect the dividend payout. Dividends are set by the instrument's terms, not by where the price trades.
Who is Samson Mow?

Samson Mow is the CEO of JAN3, a Bitcoin-focused company, and a long-time advocate for sovereign and corporate Bitcoin adoption. He frequently comments on Strategy's capital structure and BTC treasury strategy.

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