While Strategy’s preferred STRC shares ended July well below their $100 par value, investors were told that their August dividend will not increase, holding at 12%.
Executive chairman Michael Saylor delivered the news in a tweet on Saturday, continuing to pitch STRC as a way to “stretch your income.” August will be the second month that the dividend will be paid semi-monthly after shareholders approved that change in June.
STRC shares closed at $89.46 on Friday, clocking a 5.42% price increase for the month which began with a dividend hike — 50 basis points to 12% — after a poor stock performance in June. The volume on the Nasdaq-traded shares on Friday were about two-thirds of their daily average.
STRC shares continued to trade significantly below their $100 par value in July.Source: TradingView
On Friday, Strategy CEO Phong Le reiterated that management’s “corporate objective is for STRC to trade at $99-$100 over time,” without elaborating when investors might expect that to transpire.
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Building cash reserve to make preferred payouts
Saylor, however, did take to social media on Sunday to dangle the possibility that the company will be making an announcement of a change in its Bitcoin treasury holdings. “Bitcoin Drive engaged,” read his X post, following a familiar pattern of posting a chart of Strategy’s BTC buys from Saylortracker.com to start off the week.
Last week, Strategy reported an $8.22 billion second-quarter net loss, driven primarily by an $8.32 billion unrealized loss on its Bitcoin (BTC) holdings as the cryptocurrency’s price declined during the quarter.
The Bitcoin treasury company said it has built a $3.75 billion cash reserve to support preferred stock payouts following the launch of its BTC monetization program.
Strategy also said it has built a $3.75 billion U.S. dollar reserve, enough to cover more than two years of preferred dividend payments and interest obligations. The company recently repurchased $25 million of its STRC preferred shares at a discount to par and said it intends to continue buying the securities while they trade below $100.
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