MicroStrategy is reissuing high-dividend preferred stock STRC, with a first month distribution of 9% and Saylor: I can pay for 180 years.

The pioneer of Bitcoin reserve strategy, MicroStrategy, (, has once again bought 6,220 BTC, now holding a total of 607,770 Bitcoins. In addition, the Strategy announced the issuance of new preferred shares, STRC, with a floating interest rate and monthly dividends, initially issuing 5,000 shares of preferred stock, with the proceeds used for general corporate purposes, including the acquisition of Bitcoin and as operating capital.

) Can Bitcoin concept stocks also earn stable dividends every quarter? A comprehensive analysis of MicroStrategy's three preferred shares (

STRC preferred stock pays monthly dividends, with a dividend rate of up to 9%.

STRC stocks will accumulate dividends at a face value of $100 with a floating Interest Rate, starting from August 31. The initial dividend rate is an annualized 9%. The initial public offering will issue 5,000 shares of preferred stock under the following conditions:

Payment method: cash payment

Interest payment frequency: Paid monthly at the end of each month.

Interest Rate: Floating interest rate, the first month is 9%, interest distribution starts at the end of August.

Redemption Price: The company has the right to redeem at any time, and the redemption price is $101 + any unpaid Interest.

STRC's redemption priority is higher than STRD, STRK, and MSTR, but lower than convertible bonds and STRF.

What is the floating Interest Rate benchmark for STRC?

STRC adopts a floating interest rate, with an initial dividend rate of 9% per annum. This will be adjusted according to the benchmark rate published daily by the SOFR ) New York Federal Reserve Bank. If the SOFR rate decreases, the distribution rate will also decrease. MicroStrategy is presumably anticipating that the Federal Reserve will begin a rate cut cycle in the future, hence adopting this method to reduce interest burdens.

STRC targets the short-term credit market

STRC pays interest monthly and has a floating interest rate, designed for short duration products (short duration), targeting the short-term credit market, such as money market funds, short-term treasury bills, commercial paper, etc., with a market size of up to 33 trillion dollars. However, compared to other products, STRC offers an interest rate of 9.5% to 10%, which is significantly better than the 4.2% of money market funds and 4.3% of short-term treasury bills.

Paying 400 million in dividends a year, Saylor, I can pay for over 180 years!

Saylor listed the current convertible bonds and preferred stocks of the Strategy and pointed out that the company will gradually phase out convertible bonds in the future, while MicroStrategy will pay more than 400 million in interest for these debts each year.

But Saylor is not at all worried about the heavy interest burden brought by preferred shares. He stated that the market value of Bitcoin currently held by MicroStrategy, after deducting the debt ( convertible bonds ), is enough for the company to pay 180 years of interest. Moreover, even if Bitcoin were to drop 75% to below $30,000, MicroStrategy could still manage 26 years of dividends.

This article discusses MicroStrategy's reissue of high-dividend preferred stock STRC, with a monthly interest payment of 9% for the first month. Saylor: I can pay for 180 years. First appeared in Chain News ABMedia.