Investment community focus has tightened on Strategy’s perpetual preferred stock, STRC, as its June 30 ex-dividend date and monthly dividend rate reset approach. Investors are weighing the company’s next move amid a prolonged Bitcoin downturn that has pulled the stock below its $100 par value and pushed its effective yield to roughly 15%.
Holders of record through June 29 will qualify for a modest $0.48 per share cash distribution payable July 15, but the real catalyst is the variable dividend reset. Unlike traditional fixed-coupon preferreds, STRC’s dividend is adjusted each month to help keep the stock near its stated value. With shares trading around $73–76, more than 25% below par, the current 11.50% annualized rate no longer reflects the market yield. Analysts at CoinDesk expect Strategy to lift the official rate to 12% or even 12.5% when the reset occurs, aiming to narrow the gap and support the price.
The decision arrives under heavy pressure. Strategy’s heavy reliance on preferred offerings to finance Bitcoin purchases has drawn scrutiny as falling Bitcoin prices erode the value of its treasury. CryptoQuant has publicly suggested the company halt Bitcoin buying to conserve cash, while one report estimated that existing liquidity could cover only around ten months of dividend obligations. Meanwhile, STRC’s price has become increasingly correlated with Bitcoin’s decline, complicating any future efforts to issue additional preferred shares on favorable terms.
Although no official announcement has been made, market participants view the imminent reset as a key test of Strategy’s unconventional model. Co-founder Michael Saylor emphasized that the firm remains focused on Bitcoin and disciplined capital allocation, but Samson Mow noted a possible $1.5 billion over-the-counter Bitcoin transaction with BSTR as an alternative approach. For now, whether a higher dividend can stabilize STRC and preserve Strategy’s capital-markets access remains uncertain.
