Strategy Maintains 12% Preferred STRC Dividend Despite Discount

Strategy CEO Michael Saylor told investors that the preferred dividend tied to Strategy’s STRC shares will stay at 12% for August, despite STRC trading well below its $100 par value through July.

In a Saturday post on X, Saylor framed STRC as an income-oriented vehicle that he says can help investors “stretch your income,” while indicating that the semi-monthly dividend schedule approved earlier this year will continue. Strategy’s chief then reiterated a longer-term target price range for the preferred shares, even as market pricing suggests investors are still demanding a discount.

Key takeaways

• Strategy’s STRC preferred dividend will remain at 12% for August, according to Michael Saylor.
• August will mark the second month in a row that STRC dividends are paid semi-monthly, following a June shareholder vote.
• STRC shares closed at $89.46 on Friday, trading below $100 par value throughout July.
• Management has continued to state a corporate objective for STRC to reach and hold around $99–$100 over time.
• Strategy says it has built a sizable cash reserve to fund preferred payouts as it monetizes Bitcoin.

Dividend guidance holds steady even as STRC trades at a discount

While Strategy’s STRC preferred shares ended July below their stated $100 par value, shareholders were told that the August dividend will not increase. Michael Saylor made that point in a Saturday X post, continuing the company’s pitch that STRC is designed to provide a steady income stream for investors.

The 12% dividend rate is not a one-off adjustment: it follows a dividend change earlier in the cycle. In June, Strategy shareholders approved changes that moved STRC to a semi-monthly payment cadence. As a result, August will be the second month that the dividend is paid on that more frequent schedule.

On the market side, STRC ended Friday at $89.46, up 5.42% for the month that began with a dividend increase. According to the article, the daily trading volume on Friday was about two-thirds of STRC’s usual daily average—suggesting participation was fairly active, but not at peak levels.

Management’s messaging has also stayed consistent with its longer-term plan. On Friday, Strategy CEO Phong Le reiterated that the company’s “corporate objective is for STRC to trade at $99-$100 over time,” without offering a specific timeline for when that target could be met.

Cash reserve strategy tied to Bitcoin treasury and preferred obligations

Beyond dividend arithmetic, the company’s stability message appears to be supported by its Bitcoin treasury and liquidity planning. Saylor posted on Sunday that “Bitcoin Drive engaged,” a phrase he used alongside a chart of Strategy’s BTC purchases from Saylortracker.com, signaling the company’s ongoing buying activity.

That matters because Strategy’s preferred dividend economics are linked to how it finances obligations while its Bitcoin holdings remain exposed to market volatility. Last week, Strategy reported an $8.22 billion second-quarter net loss, which the report attributed largely to an $8.32 billion unrealized loss tied to movements in the price of its Bitcoin holdings during the quarter.

Even with that drawdown, Strategy said it has built a cash reserve intended to help cover preferred stock payouts after the launch of its BTC monetization program. The figures cited in the article include a $3.75 billion U.S. dollar reserve. Strategy also stated that the reserve is enough to cover more than two years of preferred dividend payments and interest obligations.

In practical terms, that guidance is meant to reduce concerns that near-term Bitcoin price fluctuations could immediately disrupt the dividend. Traders may still price STRC based on expected returns and relative risk, but a defined liquidity buffer can influence how investors interpret the sustainability of the payout.

Discount-to-par repurchases and the $99–$100 over-time goal

Another point investors are watching is how Strategy manages the preferred share discount. The article says Strategy recently repurchased $25 million of its STRC preferred shares at a discount to par and intends to continue buying the securities while they trade below $100.

This approach aligns with management’s public objective for STRC to trade closer to par over time. However, the market continues to price the shares significantly lower: with Friday’s close at $89.46, the gap to $100 remains substantial. That spread reflects uncertainty about timing—how quickly any pathway to par could play out, and whether dividends alone are enough to close the valuation gap.

Le’s repeated comment that the objective is $99–$100 over time, without specifying when, highlights the central tension: Strategy is emphasizing financial buffers and ongoing BTC-driven support, while the preferred market is still setting prices around a discount that persists through July.

Investors therefore have two parallel items to track. First is the dividend rate itself—now confirmed to stay at 12% for August. Second is whether Strategy’s buybacks and any treasury policy changes translate into steady demand for STRC preferred shares that could narrow the discount.

What to watch next for STRC holders

Going forward, STRC investors should monitor the next dividend payment cycle for August and pay close attention to whether Strategy follows through on continued preferred repurchases while the shares remain below par. At the same time, any updates related to “BTC monetization” and treasury allocation could influence how markets assess the company’s ability to fund preferred obligations during periods of Bitcoin volatility.