Strategy’s STRC preferred shares traded at $100 on Wednesday for the first time since May, a move that follows months of company buybacks and a recent change in how the security’s dividend is accrued and paid.

The price level matters because STRC trading at or above its $100 stated value allows Strategy to resume issuing the preferred shares through its at-the-market program. If the company does so, the proceeds could be used to buy more bitcoin, adding to a BTC stockpile the company values at about $68 billion.

Why the $100 level matters

STRC is Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock. It is a perpetual preferred security, meaning it has no maturity date, and it is structured differently from the company’s common stock by emphasizing cash income rather than common-share exposure.

According to the source report, the company’s ability to sell additional STRC shares depends on the stock trading at or above $100. Reaching that threshold reopens a potential fundraising route that had effectively been closed while the shares were below that level.

Dividend mechanics changed at the start of November

The preferred shares carry a 12% annualized dividend rate. At the security’s $100 stated value, that works out to $12 per share per year, with the rate adjustable each month in a design intended to keep trading close to the benchmark price.

Strategy shifted the security to daily dividends on Oct. 28 after shareholder approval, with daily accruals beginning Nov. 1. The first cash distributions started on Nov. 2. Dividends now accrue every calendar day, including weekends and holidays, and are generally paid on the next business day.

Buybacks had been supporting the stock

Before STRC returned to $100, Strategy had spent months buying back shares as the company worked to support the preferred stock’s market price. Wednesday’s move back to par may signal a change in focus from price defense toward renewed issuance, although any fundraising would still depend on the company choosing to use the program.

That shift is significant because the same instrument that had required support while trading below par could now become a source of fresh capital if market conditions hold.

Balance sheet and next confirmed step

In its latest quarterly results, Strategy reported about $5.1 billion in U.S. dollar assets as of Oct. 25. The company said those reserves were intended to help support preferred dividends and debt payments.

The immediate confirmed development is that STRC has regained the $100 mark. If the shares remain at or above that level, Strategy can once again issue stock through the at-the-market program, which the report says could be used to fund additional bitcoin purchases.

Source: news.bitcoin.com