Strategy (NASDAQ:MSTR), the Bitcoin treasury company led by Executive Chairman Michael Saylor, has confirmed it will keep the annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) steady at 12% for the August period.
This decision comes even as the shares continue trading at a notable discount to their $100 stated par value.
STRC, introduced in July 2025 with an initial 9% rate, has seen multiple upward adjustments over its first year as Strategy sought to support trading near par.
The rate reached 12% effective for periods with record dates from July 1, 2026, following a 50-basis-point increase announced at the end of June.
Stretch Dividend Rate maintained at 12.00% for August 2026. $STRC pic.twitter.com/HaBpi2vEJa
— Michael Saylor (@saylor) August 1, 2026
That move formed part of a broader Digital Credit Capital Framework, which also included a strengthened USD reserve policy, repurchase authorizations for preferred and common shares, and a Bitcoin monetization program to support liquidity without compromising long-term Bitcoin holdings.
In prior months, Strategy often raised the payout when STRC spent significant time trading well below par, aiming to attract demand and help the price recover toward the $99–$100 target range that management views as the corporate objective.
After dipping as low as around $71 in June, the shares recovered somewhat in July, closing near $89.46 at the end of the month—still roughly 10–11% below par.
Despite this discount and market expectations of a possible further 50-basis-point hike, the company opted to hold the rate unchanged.
CEO Phong Le has reiterated that the goal remains for STRC to trade steadily in the $99–$100 zone over time.
The revised policy framework emphasizes that rate decisions will consider multiple factors, including trading levels, market yields, Bitcoin price and volatility, reserve coverage, and overall capital structure.
Importantly, Strategy has indicated it will not automatically increase the dividend solely because the stock trades below its stated amount.
The preferred shares pay cash dividends on a semi-monthly basis, providing a high yield relative to the par value.
At the current 12% rate, this equates to $12 annually per share based on the $100 stated amount, though the effective yield for buyers at discounted market prices is higher.
Strategy has also been active in supporting the instrument through a $1 billion repurchase program for digital credit securities, having already bought back a portion of STRC shares at a discount.
This approach reflects Strategy’s evolution in managing its capital structure while remaining committed to Bitcoin as its primary treasury reserve asset.
The company has built a substantial USD reserve dedicated to covering preferred dividends and interest obligations, providing a buffer that reduces reliance on immediate Bitcoin sales or new equity issuance when conditions are less favorable.
ATM issuance of new STRC shares has been constrained while the price sits below par, limiting one channel previously used to fund additional Bitcoin acquisitions.
By holding the dividend steady rather than escalating further, Strategy signals a shift toward broader tools—repurchases, reserve management, and patient capital allocation—to restore confidence and liquidity in STRC.
Management has described the current phase as one of refining its model for digital credit as an asset class, with the aim of achieving stable demand, high liquidity, and low volatility near par value.
Success in bringing STRC closer to its target would reopen more efficient capital-raising avenues to support the Bitcoin strategy over the longer term.
Investors continue to watch Bitcoin price action and Strategy’s disciplined execution of its repurchase and reserve policies closely, as these elements will influence whether the preferred shares can regain their intended trading range without additional rate adjustments.