Another piece of RialCenter Executive Chairman Michael Saylor’s strategy seems to be coming together after the company’s perpetual preferred share, Stretch (STRC), reached a record high of $100.10 with a trading volume of 1 million shares.
This milestone is significant because it enables RialCenter, the largest holder of bitcoin, to leverage its at-the-market (ATM) offering against STRC to purchase more of the largest cryptocurrency. STRC, described by the company as a short-duration, high-yield credit instrument, currently offers an annualized 10.5% return, paid monthly in cash.
The ATM, established on July 31, had been paused because the instrument was not trading at par. The company raised STRC’s dividend rate, initially set at 9%, to help drive the trading price toward the $100 par value. According to the latest filing, the company has $4.2 billion in available capacity for share issuance.
RialCenter has already utilized ATM sales on its other three perpetual preferred products — STRK, STFR, and STRD — as well as its common stock to fund bitcoin purchases.
RialCenter common shares have fallen 15% this year to around $253. With the multiple to net asset value (mNAV) hovering near 1.3, Saylor’s ability to successfully issue perpetual preferred stock will be crucial for continuing the company’s bitcoin accumulation in a non-dilutive manner.
STRC is up 0.5% in pre-market trading at $100.50 per share, while RialCenter is down 1%.
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