MicroStrategy Holds Dividend at 12% Amid Volatile Crypto Market
MicroStrategy, formerly known as Strategy, has announced that it will maintain its perpetual preferred stock's annual dividend rate at 12% for September. This decision signals the company's continued confidence in its Bitcoin-focused treasury strategy.
The STRC perpetual preferred stock was designed to provide a fixed dividend yield and give the company capital to fund its Bitcoin purchases. The 12% annual rate is significantly higher than typical preferred stocks, reflecting the added risk associated with Strategy's substantial Bitcoin holdings.
Strategy has transformed its balance sheet into a Bitcoin proxy, with the digital asset serving as its primary treasury reserve. By holding the dividend steady, the company signals that its Bitcoin-backed funding strategy remains intact and that it expects sufficient cash flows to cover the payout.