Strategy (MSTR) announced it will keep the 12% dividend on its high-yield preferred stock STRC unchanged for August, according to a CoinDesk report, defying expectations of a hike. The stock currently trades at $89.46, well below its $100 par value, a situation that in the past would have triggered an automatic 50‑basis‑point increase in the payout.
Dividend Decision and Past Precedents
Historically, Strategy, led by Executive Chairman Michael Saylor, has lifted the STRC dividend whenever the shares traded significantly below par for the preceding month. As recently as July 1, the company raised the payout by 50 basis points after STRC plunged to $71 in June. This time, however, the board opted to hold the dividend steady, citing confidence in the company’s long‑term bitcoin treasury approach. The decision comes as Strategy recently refined its public metrics to give investors a clearer view of net exposure in a bear market, a subject we explored in depth when we covered Strategy Revamps Bitcoin Metrics to Clarify Net Exposure in Bear Market.
Bitcoin Treasury Strategy and STRC’s Role
CEO Phong Le reiterated that Strategy’s corporate objective is for STRC to trade between $99 and $100 over time, signaling the preferred stock’s importance as a funding instrument. The company’s core asset, bitcoin, has stabilized recently, hovering above $65,000 as broader market sentiment improves—a trend highlighted in our piece on Bitcoin Steady Above $65,000 as Alphabet’s AI Spending Lifts Chip Trade. At the same time, Strategy has been busy building its cash reserves, recently announcing a $3.2 billion war chest while its bitcoin holdings remain untouched, as detailed in Saylor’s Strategy Raises Cash Reserves to $3.2 Billion, Bitcoin Holdings Unchanged.
Market Implications and What to Watch
The unchanged dividend may indicate that Strategy expects STRC’s price to recover on the back of higher bitcoin prices or fresh corporate actions, reducing the need for additional yield support. However, if bitcoin were to decline further, the stock could come under renewed pressure, potentially forcing a future hike. Investors should keep a close eye on the company’s next quarterly filing for any signs of bitcoin acquisitions or a formal revision of the dividend policy tied to the preferred shares.
