Strategy Boosts STRC Dividend to 10.75% as Preferred Stock Trades Below Par
Strategy (MSTR) on Monday raised the dividend rate for its STRC preferred series by 25 basis points to 10.75%, marking the fourth increase since its late-July IPO.
STRC, or “Stretch,” is a perpetual preferred stock offering short-duration exposure with high yield. Dividends are paid monthly in cash, with rates adjusted to help the stock trade near its $100 par value and manage price volatility.
Initially priced at $90 with a 9% dividend, STRC received two prior hikes to 10.25%, yet the stock still fell below par. A third increase briefly lifted the price to $100, but November declines in bitcoin and Strategy’s common stock pushed STRC down to about $90, prompting the latest adjustment. At press time, STRC traded at $98.43.
The dividend update coincides with a $1.44 billion cash reserve allocated for perpetual preferred payouts. Total annualized obligations across all perpetual preferred shares are approximately $800 million. With $59 billion in bitcoin reserves, the company reports 74 years of dividend coverage, though near-term payments will rely primarily on the cash buffer.
