Just saw that STRC from MicroStrategy reached its par value of $100 faster than usual after the ex-dividend date in early March – only after 9 trading days instead of the usual 10. This is interesting because it gives the company more room for capital increases again.

What is actually the story with STRC? The perpetual preferred stock was specifically designed to help MicroStrategy finance Bitcoin purchases. With a dividend yield of 11.5%, paid monthly, the stock price is intended to stay stable at $100. When the stock trades above par, the company reduces the yield to slow demand. If it falls below, the dividend is increased. Quite clever – this way, MicroStrategy can issue new shares at nearly the par value and directly invest the money into Bitcoin.

Last week, the company bought 1,031 Bitcoin for $76.6 million – which is less than in previous acquisitions, but the holdings have now grown to over 762,000 BTC. With the faster return to parity, the strategy seems to be working better than expected, giving MicroStrategy more flexibility in the capital markets.