Strategy Keeps STRC Dividend at 12% Despite Shares Trading Below Par

Strategy (NASDAQ: MSTR), led by Executive Chairman Michael Saylor, has decided to keep the dividend rate on its high-yield preferred stock, STRC, unchanged at 12% for August, surprising some investors who had anticipated another increase.

Market participants had expected Strategy to raise the dividend by as much as 50 basis points after STRC continued trading well below its $100 par value. The company has previously adjusted the payout when the preferred shares experienced sustained discounts, making another increase seem likely.

In July, Strategy boosted the STRC dividend by 50 basis points after the preferred stock dropped to around $71 during June. That move, combined with the company's sale of a portion of its Bitcoin holdings to help fund dividend payments and improving Bitcoin price stability, supported a recovery in STRC. The preferred shares have since rebounded to approximately $89.46, though they remain notably below their par value.

Despite the recovery, Strategy chose not to increase the dividend this month. While investors had hoped the company would follow its recent pattern of raising payouts when STRC traded at a significant discount, management is not obligated to adjust the dividend and opted to maintain the current rate.

The decision comes as Strategy continues to focus on improving the long-term performance of its preferred shares. CEO Phong Le recently reiterated that the company's corporate objective is for STRC to trade consistently within the $99 to $100 range over time, signaling confidence in the stock's long-term value despite its current discount.

Strategy remains widely recognized for its aggressive Bitcoin investment strategy, with investors closely watching both its cryptocurrency holdings and the performance of its preferred securities. The decision to leave the STRC dividend unchanged highlights management's flexibility in balancing shareholder returns with broader corporate and capital management objectives, even as the preferred stock continues to trade below its intended value.