Strategy's Bitcoin Accumulation Machine Is Facing a Major Stress Test

Strategy's bitcoin accumulation machine faces a stress test as its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) trades at $87.85, well below its $100 stated value. STRC currently pays an 11.5% annual dividend, giving buyers a 13.1% effective yield. This raises Strategy's financing cost for buying bitcoin above its advertised 11.5% rate.