Strategy (MSTR) is heavily diluting common shareholders via continuous at-the-market share sales to fund preferred stock buybacks (STRC), while buying back STRC to support its price. This relative value shift favors a pair trade: long STRC (beneficiary of buybacks) and short MSTR (dilution loser).
Strategy (MSTR) is heavily diluting common shareholders via continuous at-the-market share sales to fund preferred stock buybacks (STRC), while buying back STRC to support its price. This relative value shift favors a pair trade: long STRC (beneficiary of buybacks) and short MSTR (dilution loser).