Strategy Stock STRC Falls to $76.2 After Market Open, Arkham Says No Forced Liquidation Risk

LUNA0.20%
According to Arkham analysis, Strategy's perpetual preferred stock STRC dropped to $76.2 tonight after U.S. market open, trading 25% below its $100 face value. Arkham noted that STRC is a perpetual preferred stock with an 11.5% dividend yield, requiring approximately $1.2 billion in annual dividend payments. Despite market concerns about the next LUNA, Arkham stated that Strategy has $1.4 billion in reserves and faces no legal obligation to prioritize dividend payments, eliminating forced liquidation risk. However, the analyst cautioned that stock price declines reflect investor concerns about management's continued payment capacity and fundraising ability, which could long-term impact investor confidence and financing opportunities.
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