Overview
- Strategy announced it will maintain the declared dividend on its STRC preferred at 12% and declined to increase the rate despite some investor expectations for a hike.
- CEO Phong Le said management’s corporate objective is for STRC to trade near $99–$100 over time, which the company frames as a target rather than a binding obligation.
- STRC remains significantly below its $100 stated amount after an earlier plunge to about $71 and a partial rebound into the high $80s, keeping yields elevated for holders.
- To fund distributions and support the preferred, Strategy has tapped a U.S. dollar reserve, sold some bitcoin, and begun repurchasing STRC shares at discounts to stated value.
- Keeping the 12% rate lowers immediate cash commitments compared with another rate increase but leaves the company relying on reserves and buybacks to move STRC toward management’s stated price goal.