Bitcoin fell near $64K on Nov. 14, down more than 21% over one month. Michael Saylor pointed to returns on Strategy's STRC preferred shares as the slide pushed the company's bitcoin holdings further below their acquisition cost.
Michael Saylor highlighted STRC's returns during the slump. The Strategy founder compared the preferred stock's returns with bitcoin's price moves on X on Nov. 14, covering one week, one month, three months, and one year.
STRC holds up against bitcoin's drop
His chart shows STRC returned 0.3% over one week and 13.4% over one year, while bitcoin fell 9.1% and 29.8% over the same periods. Over three months, however, bitcoin gained 8.7%, topping STRC's 7.5% return.
The figures used data through 4 p.m. Eastern time on Nov. 13, and they counted STRC dividends without assuming those payouts bought more shares. Bitcoin has since traded at $64,428, down 5.85% over 24 hours, with losses of 14.37% over seven days and 21.21% over one month.
STRC's 12% rate depends on corporate funding
Strategy's STRC metrics listed a $99.91 closing price on Nov. 13 and a 12% variable annualized dividend rate. At 12%, the dividend amounts to $12 a year per $100 stated amount per share if the rate stays unchanged.
Economist Peter Schiff questioned the assumptions behind STRC payments on Nov. 12. His criticism concerned payment sustainability, whereas Saylor's chart measured historical investor returns.
Strategy keeps buying while holdings sit underwater
Strategy bought 1,036 BTC for $81.9 million during Nov. 2-8. It also spent $188.3 million buying back 1,887,464 of its own STRC shares.
Valuing the company's disclosed 850,364 BTC at $64,428 produces approximately $54.79 billion, against a $64.16 billion purchase cost. That implies an unrealized loss of approximately $9.37 billion, based on its last reported holdings.
As of Nov. 8, Strategy held a $4.77 billion designated dollar reserve set aside for preferred-stock dividends and debt interest.
Source: Bitcoin News
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