SKN | Strategy Holds STRC Dividend at 12% Despite Discounted Share Price

• Strategy will maintain its STRC preferred stock dividend at 12% for August despite shares trading below their $100 par value throughout July.
• Executive Chairman Michael Saylor reaffirmed STRC as an income-focused investment while hinting at another Bitcoin treasury purchase.
• The company has built a $3.75 billion cash reserve to support preferred dividend payments and interest obligations.
• Strategy continues repurchasing STRC shares below par value while targeting a long-term trading range of $99 to $100.

Bitcoin treasury company Strategy has announced that its STRC preferred shares will continue paying a 12% annual dividend in August, despite the stock spending most of July below its $100 par value.

Executive Chairman Michael Saylor confirmed the decision over the weekend, continuing to position STRC as an income-generating investment for shareholders. August marks the second month that dividends will be distributed on a semi-monthly basis, following shareholder approval of the revised payment schedule in June.

Although investors had anticipated the possibility of another dividend increase after STRC traded at a significant discount during July, the payout will remain unchanged.

STRC Shares Remain Below Target Value

STRC shares finished Friday at $89.46, representing a monthly gain of 5.42% after recovering from weaker performance earlier in the summer.

The preferred stock received a 50-basis-point dividend increase to 12% at the beginning of July following disappointing trading activity in June. Even so, the shares continued to trade well below their intended $100 redemption value throughout the month.

Strategy CEO Phong Le reiterated that management’s long-term objective remains for STRC to consistently trade between $99 and $100, though he did not provide a timeline for achieving that goal.

Cash Reserve Supports Preferred Shareholders

Strategy also highlighted the strength of its balance sheet, noting that it has accumulated a $3.75 billion cash reserve to support dividend payments and interest obligations tied to its preferred securities.

According to the company, the reserve is sufficient to cover more than two years of preferred dividends and debt-related obligations.

The company recently repurchased $25 million worth of STRC shares while they traded below par value and indicated it intends to continue buying back shares as long as they remain discounted.

Saylor Hints at Another Bitcoin Purchase

Alongside the dividend announcement, Michael Saylor suggested Strategy may soon expand its Bitcoin holdings once again.

Posting on social media, Saylor shared the message “Bitcoin Drive engaged,” accompanied by the company’s familiar Bitcoin acquisition tracker, a pattern that has often preceded announcements of new Bitcoin purchases.

The teaser comes shortly after Strategy reported an $8.22 billion net loss for the second quarter, largely reflecting an $8.32 billion unrealized accounting loss caused by lower Bitcoin prices during the reporting period rather than operational performance.

Bitcoin Strategy Remains Unchanged

Despite recent volatility, Strategy continues to emphasize its long-term Bitcoin accumulation strategy while using preferred equity offerings to strengthen its capital structure.

The company has increasingly focused on balancing aggressive Bitcoin purchases with maintaining sufficient liquidity to meet obligations to preferred shareholders.

Management believes maintaining ample cash reserves and repurchasing discounted preferred shares will strengthen investor confidence while supporting the company’s broader Bitcoin treasury strategy.

Outlook

Strategy’s decision to maintain its 12% STRC dividend underscores its commitment to preserving stable income for preferred shareholders while continuing to build one of the world’s largest corporate Bitcoin treasuries. With a substantial cash reserve, ongoing share repurchases and hints of additional Bitcoin acquisitions, the company remains focused on balancing shareholder returns with its long-term cryptocurrency investment strategy.