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Strategy isn’t budging on its STRC preferred share dividend. The company locked in a 12% rate for August even though the shares closed July at $89.46 — more than ten bucks under their $100 par value.
Executive chairman Michael Saylor made the call public through social media, keeping the rate flat after a month that was, honestly, a bit of a mixed bag. STRC shares did climb 5.42% in July — a decent bounce — but they’re still underwater relative to par. Back in June, a disappointing performance had pushed the company to lift the dividend by 50 basis points to hit that 12% level. The expectation, probably, was that the boost would pull shares back toward par. It didn’t, not fully. And now, rather than layering on another hike, Strategy is holding the line. July was also the second consecutive month under the new semi-monthly payout schedule, which shareholders approved in June. Before that change, payouts were less frequent. So the cadence is faster now, even if the rate isn’t moving.
Share volumes on Nasdaq stayed below average through July.
That’s not a great sign for investor appetite. CEO Phong Le has said he wants STRC trading at $99 to $100 — basically at par — but he didn’t put a timeline on it. No specific date, no roadmap. Just the goal sitting out there. Unclear when, or whether, the market buys in.
An $8.22 Billion Loss and a $3.75 Billion Cushion
The backdrop here is pretty rough. Strategy posted an $8.22 billion net loss for Q2. The bulk of that — $8.32 billion — came from unrealized losses on its Bitcoin holdings as the cryptocurrency’s value dropped during the quarter. Unrealized means the company hasn’t actually sold anything, so it’s a paper loss, but it’s a massive one and it hits the income statement hard under current accounting rules.
To keep preferred stock payouts running no matter what Bitcoin does next, the company has built a cash reserve of $3.75 billion. Per Strategy, that reserve can cover more than two years of dividend and interest payments. That’s the safety net. It doesn’t fix the share price problem, but it does mean STRC holders aren’t staring down a dividend cut if crypto markets get ugly again.
Strategy also repurchased $25 million worth of STRC preferred shares at a discount to par. Buying your own preferred shares below face value is pretty much a straightforward capital move — you retire debt cheaper than it was issued, which is good for the balance sheet. The company said it plans to keep doing buybacks as long as shares stay below $100.
Saylor Teases a Bitcoin Announcement
Saylor dropped a hint on social media that something is coming around Strategy’s Bitcoin treasury holdings. His post came with a chart of the company’s Bitcoin purchase history, which is kind of his signature move — he’s done it before when signaling a new buy or a strategy update. No specifics yet. No numbers, no dates, no confirmation of what the announcement actually covers.
Strategy has been one of the most aggressive corporate Bitcoin accumulators around, and any shift in how it manages those holdings would be a big deal for the market. But right now it’s a tease. Investors are watching.
The company’s financial position is worth sitting with for a second. An $8.32 billion unrealized Bitcoin loss in a single quarter is a stark number. It’s not a default risk — the cash reserve and the ongoing preferred share structure are designed to absorb exactly this kind of volatility — but it’s a reminder of how exposed Strategy’s balance sheet is to crypto price swings. The company has basically bet its financial identity on Bitcoin going up over the long run. When it doesn’t, at least in a given quarter, the losses are enormous on paper.
And yet Strategy keeps the dividend steady. It keeps buying back shares. It’s signaling that the long-term plan hasn’t changed, even when the short-term numbers look brutal.
STRC shares at $89.46 are still 10.54% below par. The semi-monthly dividend is real money for preferred shareholders, and the $3.75 billion reserve gives that income stream credibility. But the gap between where shares are trading and where management wants them to be isn’t small. A 5.42% monthly gain is good. It’s not enough.
No timeline from Le. No confirmed details from Saylor’s teaser. The $25 million buyback is ongoing. And the 12% dividend holds for August.
Hub: Bitcoin price, news, and analysis
Frequently Asked Questions
What is Strategy’s current STRC dividend rate for August?
Strategy kept the STRC preferred share dividend at 12% for August, unchanged from July, even though shares closed the month at $89.46 — below their $100 par value.
How large is Strategy’s cash reserve for preferred stock payouts?
Strategy built a $3.75 billion cash reserve, which the company says can cover more than two years of dividend and interest payments on its preferred shares.
