Stock Market

Story: Strategy Holds STRC Dividend at 12% While Shares Sit $10 Below Par

By Bruce Buterin

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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.

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Saylor Teases a Bitcoin Announcement. Saylor dropped a hint on social media that something is coming around Strategy's Bitcoin treasury…

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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.

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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.

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Share volumes on Nasdaq stayed below average through July.

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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.

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To keep preferred stock payouts running no matter what Bitcoin does next, the company has built a cash reserve of $3.75 billion.

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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…

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More context: Strategy Holds STRC Dividend at 12% as Shares Trade Well Below Par

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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.

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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.

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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.

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More context: La Rosa Holdings Carries $8.14M in Crypto While Bleeding $13.5M in a Single Quarter

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STRC shares at $89.46 are still 10.54% below par. The semi-monthly dividend is real money for preferred shareholders, and the $3.

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No timeline from Le. No confirmed details from Saylor's teaser. The $25 million buyback is ongoing. And the 12% dividend holds for August.

The Currency Analytics

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