Strategy maintains STRC preferred stock dividend at 12%

Key facts

• Strategy is maintaining the dividend on its preferred stock STRC at 12%.
• The company has a corporate objective for STRC to trade between $99 and $100.
• Strategy previously raised the dividend on July 1 following a price drop in June.
• STRC stock is currently trading at $89.46, below its $100 par value.

Strategy is maintaining the dividend on its high-yielding preferred stock, STRC, at 12% for August, opting not to increase it despite the stock trading below its par value. Historically, the company has raised the payout when STRC traded sizably below its $100 par. As recently as July 1, Strategy had increased the dividend by 50 basis points after STRC fell to as low as $71 in June. This increase, combined with Strategy's sale of some bitcoin to fund dividends and a stabilization in bitcoin's price, helped STRC recover to its current price of $89.46, though it remains significantly below par.

CEO Phong Le stated that Strategy's corporate objective is for STRC to trade between $99 and $100 over time. However, the company is not obligated to raise the dividend and chose not to do so this month.