Strategy Holds STRC Dividend at 12% Amid Market Challenges

Strategy Maintains STRC Dividend Amid Market Pressures

As of August 2026, Strategy Inc. has decided to keep the annual dividend rate for its STRC preferred stock at 12%. This decision comes despite the Nasdaq-listed security closing July at $89.46 per share, which is over 10% below its stated amount of $100.

Market Performance and Financial Strategy

For August, the annualized dividend remains unchanged, standing at $12. The effective yield based on the current market price translates to approximately 13.41%. The company holds a significant $3.75 billion reserve, which covers roughly 2.1 years of preferred dividends and debt interest payments.

Recently, Strategy has engaged in share buybacks, repurchasing 288,930 STRC shares below their par value for about $25 million. The buyback took place at an average price of $86.53 per share, providing a significant discount and allowing the company to maintain a strong cash position.

Dividend Policy Changes

In a shift from automatic increases, the company changed its dividend-setting policy on June 29. This policy now considers various factors, including STRC’s market price and credit spreads, rather than simply responding to the share’s current trading level. Management has indicated it will maintain the 12% rate until STRC experiences sustained trading near $100.

Maintaining Cash Reserves

The $3.75 billion reserve not only bolsters the 12% payout but also allows Strategy to manage increased commitments from the preferred-stock dividends, which soared to $400.7 million for the second quarter, up from $49.1 million a year prior. The company aims to replenish this reserve primarily through Bitcoin sales, having sold about $218.4 million of Bitcoin in 2026.

Future Outlook for STRC

Chief Executive Phong Le stated that the management’s goal is for STRC shares to trade within the $99 to $100 range over time. However, there is no set timeline for achieving this target. Investors are currently awaiting the upcoming payment distribution on August 15 and observing future actions regarding preferred stock buybacks and SEC disclosures.

Michael Saylor, Executive Chairman, emphasized the benefits of the STRC product on August 1, promoting its potential to provide consistent income. The next confirmed event regarding the dividend will be the distribution on August 15.