Strategy (MSTR) has maintained the dividend on its STRC preferred stock at an annualized 11.5% for the fourth consecutive month, reflecting price stability near the $100 par value. At the same time, the company disclosed it sold 32 Bitcoin to fund those dividend payments when the stock traded below par, alongside a $128.3 million sale of common stock.
The STRC dividend mechanism is variable: it increases when the stock trades below $100 to boost demand, and decreases when above. With STRC closing last month at $99.62, no rate change was needed. However, periodic dips below par forced Strategy to use cash reserves—underpinned by its enormous Bitcoin holdings—to meet obligations. The company only channels STRC proceeds into Bitcoin purchases when the stock trades above $100, creating a direct link between the preferred stock’s performance and its digital asset strategy.
The sale of 32 BTC represents a modest fraction of Strategy’s 843,706 BTC reserves as of May 31. The concurrent $128.3 million common stock offering provides additional liquidity that could support operations or further Bitcoin accumulation. This dual approach underscores the company’s ongoing balance between aggressive Bitcoin treasury management and its commitments to income-focused shareholders.
While the steady dividend signals stability, the use of Bitcoin sales to fund payouts highlights the practical costs of the STRC structure. Investors will monitor the preferred stock’s price and the company’s cash position for clues about future dividend sustainability.
