BlockBeats News, March 18th, Strategy founder Michael Saylor stated that the perpetual preferred stock STRC’s volatility has dropped to a historical low of 1.5%, pushing its Sharpe ratio to a historical high of 5.37, setting a new standard for risk-adjusted performance.
According to the STRC official data dashboard, the current price of STRC is $99.88, with an effective yield of 11.51%. The 30-day historical volatility has reached a new low of 1.5%, and the Sharpe ratio has hit a new high of 5.37, demonstrating that STRC can provide high returns at low risk.
BlockBeats Note: STRC is a floating rate perpetual preferred stock issued by Strategy, positioned as a short-term high-yield credit product. The price is anchored around $100, distributed monthly in cash, with the dividend yield adjusted monthly. Strategy raises funds by continuously issuing new STRC to buy BTC, using the commonly understood notion that the total BTC holdings’ value should be lower than MSTR’s market cap to boost the listed market cap and continue issuing STRC in the hope of achieving a positive feedback loop. The leverage internalization amplifies MSTR’s price volatility relative to BTC, representing a leveraged approach to investing in Bitcoin.
