Strategy Raises STRC Dividend to 10.75% as Stock Trades Below Par
Strategy (MSTR) on Monday increased the dividend rate for its STRC preferred series by 25 basis points to 10.75%, marking the fourth raise since the IPO in late July.
STRC, nicknamed “Stretch,” is a perpetual preferred stock designed for short-duration exposure with high yield. Dividends are paid monthly in cash, with rates adjusted to keep the stock trading near its $100 par value and reduce volatility.
Initially priced at $90 with a 9% dividend, STRC saw two increases to 10.25% but still fell short of par. A third hike briefly pushed the stock to $100, but declines in bitcoin and Strategy’s common shares drove STRC down to around $90 in November, prompting the latest adjustment. At press time, it traded at $98.43.
The dividend update coincides with a $1.44 billion cash reserve earmarked for perpetual preferred payouts. Total annualized obligations across all perpetual preferred shares are roughly $800 million. With $59 billion in bitcoin reserves, the company reports 74 years of dividend coverage, though near-term payments will rely mainly on the cash buffer.
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