Strategy plans to increase STRC dividend to 12% and authorizes bitcoin sales
Farside Investors noted that if investor concerns about Strategy's credit risk increase, the price of STRC may decline. Raising dividends to support the price would increase cash pressure and further affect investors’ certainty about the security’s valuation. STRC recently traded at around 75 USD before rebounding to 86 USD.
Strategy has introduced the Digital Credit Capital Framework, planning to establish USD reserves, increase STRC dividends to 12%, repurchase preferred securities at a discount, and authorize the sale of Bitcoin to help pay dividends and reserve funds.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The White House did not intervene in the decision-making of Nvidia's board of directors.
BoE’s Greene says it is appropriate to proactively tighten our monetary policy stance
CoreWeave plans to issue at least $4 billion in investment-grade loans, falling nearly 6% after hours
According to Bloomberg, CoreWeave is seeking to refinance at least 4 billion USD through an investment-grade loan, led by Morgan Stanley and Mitsubishi UFJ, with a syndication roadshow expected to start as soon as next week. This financing continues the structure of using Nvidia chips and customer contracts as collateral, with the yield on the issuance anticipated to be around 7% to 7.5%, much lower than its junk bond yield. Following the news, CoreWeave's shares fell nearly 5.8% after hours.
Crypto prices
More
