Saylor Says Sit: Strategy Leaves STRC Dividend Parked at 12% While Preferred Lingers Below Par

Strategy is holding the dividend on its high-yielding preferred stock STRC at 12% for August, a decision Executive Chairman Michael Saylor communicated in a Saturday tweet in which he continued to pitch STRC as a way for investors to "stretch your income." The move breaks from Strategy's recent pattern of lifting the payout whenever the shares traded substantially below their $100 par value; the company had last hiked the dividend by 50 basis points on July 1, after STRC plunged to as low as $71 in June.

STRC closed Friday at $89.46 on the Nasdaq, up 5.42% for the month of July but still well shy of par. On Friday, Strategy (MSTR) CEO Phong Le reiterated that management's "corporate objective is for STRC to trade at $99-$100 over time," without specifying a timeline. August will mark the second month that STRC pays its dividend on a semi-monthly schedule, a change approved by shareholders in June.

Since the late-June low, the preferred has rebounded more than 30%, trading near $94 as of Wednesday. Strategy has supported the price by selling 5,226 BTC for $321 million across three transactions, reducing its bitcoin holdings from 847,363 BTC to approximately 842,137 BTC, and by repurchasing $106 million of STRC. On Monday, the company added another $250 million to its U.S. dollar reserve, bringing the total to $4 billion, equivalent to roughly 2.3 years of coverage for dividend obligations on its preferred securities.

The company also recently repurchased $25 million of STRC at a discount to par and said it intends to continue buying the securities while they trade below $100. On Sunday, Saylor posted on X that "Bitcoin Drive engaged," followed by a familiar chart from Saylortracker.com, hinting at a forthcoming update to the firm's BTC treasury holdings.

Strategy last week reported an $8.22 billion second-quarter net loss, driven primarily by an $8.32 billion unrealized loss on its bitcoin holdings as the price of BTC declined during the quarter. Management noted on the earnings call that, following STRC's initial public offering, it took 70 trading days for the security to reach par after trading at $90 in July 2025, a benchmark that would put a potential return to par around Sept. 8 if applied to the current trajectory.