Strategy raised the dividend on its flagship preferred stock to 12% in late June, but the security is still changing hands well below the $100 price the company says it wants investors to see.
STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, traded in the mid-to-high $80s this week, with some sessions dipping under $85. The stock has a 52-week range of roughly $71 to $100, and the gap between its market price and its stated par value has become one of the more debated topics on X in early July.
Strategy unveiled a “Digital Credit Capital Framework” on June 29. The plan raised STRC’s annualized dividend to 12%, moved payouts to a semi-monthly schedule, and lifted the company’s USD Reserve to about $2.55 billion. That figure covers roughly 17.4 months of combined preferred dividend and interest obligations, according to the filing.
The company also authorized a $1 billion repurchase program covering its four preferred securities, STRC, STRF, STRD and STRK, with STRC named as the initial priority if buybacks are seen as accretive. Strategy disclosed that the purchases will not draw from the USD Reserve. Instead, funding could come from a separate $1.25 billion bitcoin monetization program approved alongside the buyback plan.
