Bitcoin Dive Will Hike Strategy's Borrowing Rate To 11.75% — At Least

Strategy's sale of $2.5 million bitcoin, which helped precipitate this week's dive for the cryptocurrency, appears certain to hike its annual financing costs by $26 million. After sinking in heavy volume to start the month, Strategy's Stretch variable rate preferred stock with the STRC ticker has an impossibly steep mountain to climb to avoid a ratcheting up of its dividend rate by at least 25 basis points to 11.75% on all $10.5 billion of the outstanding securities. Friday's even deeper selloff has put a potential 50-basis-point hike key Strategy's borrowing rate to 13% in play.