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Strategy Inc. kept the annual dividend rate on its STRC preferred stock at 12% for August 2026, even though the Nasdaq-listed security ended July more than 10% below its $100 stated amount.<\/p>\n
\n Summary<\/span>\n <\/p>\n <\/p>\n The company\u2019s official STRC information page confirms<\/a> that the variable annualized rate for record dates beginning in August remains 12%. Executive Chairman Michael Saylor promoted the product on Aug. 1 as a way to \u201cstretch your income,\u201d emphasizing its twice-monthly payment schedule.<\/p>\n STRC closed at $89.46 on July 31, down $0.25 during the session. At that price, the $12 annualized payout based on the security\u2019s $100 stated amount produces an effective yield of about 13.41%. Because Saylor announced the unchanged rate during the weekend, no post-announcement market reaction will be available until Nasdaq trading resumes.<\/p>\n <\/p>\n Strategy raised STRC\u2019s annual dividend from 11.5% to 12% for record dates beginning in July. The increase followed a sharp June decline that took the shares as low as $71.25 and moved them far below the $100 level the company wants to maintain.<\/p>\n However, the company changed its rate-setting policy on June 29. Under the revised framework, management considers STRC\u2019s market price, credit spreads, competing yields, Bitcoin volatility, cash-reserve coverage and the wider capital structure. The filing specifically states that Strategy will not necessarily raise the dividend solely because STRC trades below its stated amount.<\/p>\n That policy explains why July\u2019s discount did not produce another 50-basis-point increase. Strategy instead said during its second-quarter results that it would maintain the 12% rate until STRC shows \u201csustained, healthy trading\u201d near $100. The language describes management\u2019s objective and does not guarantee that the shares will return to par.<\/p>\n The decision also prevents Strategy\u2019s cash obligations from rising further while the company attempts to repair demand through other measures. Every additional 50 basis points would increase the annual cash cost across more than $10.46 billion in outstanding STRC stated value.<\/p>\n Strategy has shifted part of its response from dividend increases to preferred-share repurchases. Between July 20 and July 26, the company bought back 288,930 STRC shares for approximately $25 million, paying an average of $86.53 per share. The purchase represented a 13.47% discount to the shares\u2019 stated amount.<\/p>\n About $975 million remains under Strategy\u2019s $1 billion preferred-securities repurchase authorization. Management said it intends to purchase more STRC at deeper discounts and reduce its activity as the security approaches $100. The authorization does not require Strategy to spend the remaining amount and has no fixed expiry date.<\/p>\n Repurchasing shares below par reduces the number of preferred shares requiring future cash distributions. It also lets Strategy retire $100 of stated value for less than $100. However, buybacks use capital that could otherwise remain available for dividends, debt interest or Bitcoin purchases.<\/p>\n As previously reported, Strategy funded its first $25 million STRC <\/a>repurchase while increasing its U.S. dollar reserve and keeping Bitcoin purchases paused. The company raised much of that liquidity through sales of MSTR common stock rather than new STRC issuance.<\/p>\n Strategy reported a $3.75 billion U.S. dollar reserve as of July 26. The company said that amount covers approximately 2.1 years of expected preferred-stock dividends and interest on outstanding debt. The reserve can only be used for those obligations unless the board approves another purpose.<\/p>\n The cash cushion has become more important because Strategy\u2019s preferred-stock commitments have expanded. The company recorded $400.7 million in preferred dividends during the second quarter, compared with $49.1 million one year earlier. It has paid or declared more than $1 billion in cumulative preferred distributions.<\/p>\n Strategy also reported an $8.22 billion second-quarter net loss, driven mainly by an $8.32 billion unrealized loss on its Bitcoin holdings. The accounting loss did not represent an equivalent cash outflow, but the preferred dividends must be paid in U.S. dollars.<\/p>\n The company has therefore authorized Bitcoin sales to refill the reserve, cover dividends and interest, or finance approved security repurchases. Strategy had sold approximately $218.4 million of Bitcoin during 2026 through July 26 to fund part of its preferred obligations.<\/p>\n\n\n
Strategy\u2019s STRC dividend no longer rises automatically<\/strong><\/h2>\n
Buybacks now carry more of the price-support burden<\/strong><\/h2>\n
The $3.75 billion reserve supports the 12% payout<\/strong><\/h2>\n