Strategy leaves preferred STRC dividend at 12% as price still below par

While Strategy’s preferred STRC shares ended July good beneath their $100 par value, investors were told that their August dividend volition not increase, holding astatine 12%.

Executive president Michael Saylor delivered the quality successful a tweet connected Saturday, continuing to transportation STRC arsenic a mode to “stretch your income.” August volition beryllium the 2nd period that the dividend volition beryllium paid semi-monthly aft shareholders approved that change successful June.

STRC shares closed astatine $89.46 connected Friday, clocking a 5.42% terms summation for the period which began with a dividend hike — 50 ground points to 12% — aft a mediocre banal show successful June. The measurement connected the Nasdaq-traded shares connected Friday were astir two-thirds of their regular average. 

STRC shares continued to commercialized importantly beneath their $100 par worth successful July.
Source: TradingView

On Friday, Strategy CEO Phong Le reiterated that management’s “corporate nonsubjective is for STRC to commercialized astatine $99-$100 implicit time,” without elaborating erstwhile investors mightiness expect that to transpire. 

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Building currency reserve to marque preferred payouts

Saylor, however, did instrumentality to societal media connected Sunday to dangle the anticipation that the institution volition beryllium making an announcement of a alteration successful its Bitcoin treasury holdings. “Bitcoin Drive engaged,” work his X post, pursuing a acquainted signifier of posting a illustration of Strategy’s BTC buys from Saylortracker.com to commencement disconnected the week.

Last week, Strategy reported an $8.22 cardinal second-quarter nett loss, driven chiefly by an $8.32 cardinal unrealized nonaccomplishment connected its Bitcoin (BTC) holdings arsenic the cryptocurrency’s terms declined during the quarter.

The Bitcoin treasury institution said it has built a $3.75 cardinal currency reserve to enactment preferred banal payouts pursuing the motorboat of its BTC monetization program.

Strategy besides said it has built a $3.75 cardinal U.S. dollar reserve, capable to screen much than 2 years of preferred dividend payments and involvement obligations. The institution precocious repurchased $25 cardinal of its STRC preferred shares astatine a discount to par and said it intends to proceed buying the securities portion they commercialized beneath $100.

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