Strategy Keeps August Dividend Rate at 12% for STRC Preferred Shares

Strategy, a company behind STRC preferred shares, has decided to maintain the August dividend rate at 12 percent. This decision keeps the dividend rate at the same level as last month's increase. The company had raised the rate by 50 basis points after a weak share-price trend in June.

The STRC preferred shares have been trading below their $100 par value, and Strategy is conducting direct buybacks to take advantage of this opportunity. In fact, the company recently repurchased $25 million worth of STRC preferred shares at prices below par, with a policy to continue buying while the share price remains below $100.

Strategy has also built a cash reserve of $3.75 billion to support dividend payments and interest payment obligations for more than 2 years. This move comes as the company's performance has recently deteriorated, with a second-quarter net loss of $8.22 billion largely due to an unrealised loss on its Bitcoin holdings.