Samson Mow Sees Bitcoin Preferred Shares Rebounding Toward Par

The recovery of SATA, which recently climbed from $83.30, serves as a litmus test for the viability of variable-rate perpetual preferred shares. These instruments, designed to fund corporate Bitcoin acquisitions without diluting common shareholders, use dividend adjustments to maintain a price near $100. Despite a late-June market slide, Mow argues that the rebound demonstrates the underlying treasury structures remain sound. He maintains that once SATA reaches par, the market will likely reassess STRC, which currently trades at approximately $87.

Institutional appetite for these assets remains robust despite the ongoing discount. Michael Saylor recently confirmed that STRC holds top positions in three major U.S. preferred stock ETFs, including BlackRock’s iShares Preferred and Income Securities fund. Collectively, these ETFs hold $756 million in STRC, underscoring its integration into broader institutional portfolios. While STRC remains 13% below par, Mow suggests the price gap is temporary. He believes that as companies refine their capital-raising strategies and Bitcoin holdings, investors will move past the panic that triggered the initial selloff, ultimately allowing the securities to function as intended.