Overview
- CEO Phong Le, speaking Monday, said the company is considering either raising STRC’s dividend rate or bolstering USD reserves to push the preferred back toward $100 par.
- STRC is trading around $94.80–$95, roughly 5% below its $100 face value, a discount investors link to the end-of-June dividend decision.
- Analyst Khing Oei’s market-price model treats current trading as a probability-weighted signal and assigns about a 63% chance of a dividend increase while modeling three outcomes that value STRC near $100, about $88.50, or roughly $70 under raise, hold, or suspension scenarios.
- STRC is a cumulative preferred so unpaid dividends accrue and must be repaid before other shareholder distributions, and stockholders approved a move to semi-monthly payments on June 8 to improve liquidity for holders.
- Because STRC pays dividends on a $100 face value, the below-par price raises the effective yield for new buyers and makes fresh issuance more expensive for Strategy, which could raise the company’s cost of capital for funding Bitcoin purchases.