Strategy Holds Line on STRC Dividend Rate Amid Trading Discount

Strategy's STRC preferred dividend will remain at 12% for August, according to CEO Michael Saylor. In a recent post on X, Saylor emphasized that the STRC preferred shares are designed as an income-oriented vehicle that can help investors 'stretch their income.' Despite trading below its $100 par value throughout July, with a closing price of $89.46 on Friday, Strategy's management has maintained its corporate objective for STRC to reach and hold around $99-$100 over time.

Strategy has built a sizable cash reserve to fund preferred payouts as it monetizes Bitcoin. The company claims this reserve is enough to cover more than two years of preferred dividend payments and interest obligations, aiming to reduce concerns about near-term Bitcoin price fluctuations disrupting the dividend. Strategy has repurchased $25 million of its STRC preferred shares at a discount to par and intends to continue buying these securities while they trade below $100.