Svmuu News: On June 25, Strategy’s preferred stock, STRC, fell below $82 and is currently trading at $81.83, hitting a new all-time low with a decline of 6.3%.
If the price of STRC falls significantly below par value, it implies that the market is demanding a higher yield as compensation, and it also reflects a decline in investor confidence in the company’s creditworthiness or the stability of future dividends.Since Strategy previously relied heavily on issuing STRC to raise funds for the acquisition of Bitcoin, if STRC trades below par value for an extended period, the company’s financing costs for continuing to issue new shares will rise significantly—effectively requiring it to pay higher interest rates to borrow funds.