Falling below face value instead triggers high-yield protection; this design is quite interesting, essentially giving patient holders a discount coupon.

JAN3 CEO Samson Mow stated that the yield-bearing security STRC launched by Strategy has a "self-healing mechanism" after falling below the $100 face value. When the price is below face value, the company will stop issuing additional shares through ATM, and investors can achieve higher actual yields and capital gains from returning to face value. For example, buying STRC at $90, the total annual return could approach 24% if it recovers to face value. Mow believes there is no need to increase dividends or cash reserves, as STRC is operating as designed.