Strategy has kept the dividend on its preferred STRC shares unchanged at 12% for August, with executive chairman Michael Saylor announcing the decision on social media as part of the company's push to "stretch your income" for shareholders. The steady rate comes even though STRC shares closed Friday at $89.46, still well below their $100 par value, after climbing 5.42% over the past month.
This marks the second month Strategy has paid the dividend on a semi-monthly schedule, a structure shareholders approved in June. The stock's dividend rate had already received a 50 basis point bump to 12% in July following a weak June performance, and the company has held that level steady rather than adjusting it further even as the shares continue to trade at a discount.
Cash Reserves Built to Cover Payments
Strategy CEO Phong Le said the company's "corporate objective is for STRC to trade at $99-$100 over time," though he did not offer a timeline for reaching that target. To back the dividend commitment, the company has built a cash reserve of $3.75 billion, which management says covers more than two years of preferred dividend payments and interest obligations even without additional capital raises.
The company has also been repurchasing STRC shares opportunistically while they trade below par, buying back $25 million worth of the preferred stock at a discount. Friday's trading volume came in at roughly two-thirds of the stock's daily average, suggesting a quieter session heading into the weekend.
Q2 Loss Tied to Bitcoin Holdings
The steady dividend follows a difficult second quarter for Strategy, which reported a net loss of $8.22 billion, driven largely by an $8.32 billion unrealized loss on its Bitcoin holdings under fair-value accounting rules. Saylor separately posted that "Bitcoin Drive engaged," a phrase that has previously preceded new treasury or acquisition announcements from the company, hinting at further Bitcoin-related moves ahead even as the preferred stock works to close the gap to par.
