Strategy Keeps STRC Dividend at 12% as Stock Stays Below $100

Strategy, a company famous for holding huge amounts of Bitcoin, is in the spotlight again — this time over one of its special stocks called STRC.

First, some basics. A preferred stock (a special type of company share that pays regular fixed payments, similar to interest) called STRC has a par value (the official 'face value' price a share is meant to be worth) of $100. But right now, STRC is trading below that $100 mark, meaning investors are paying less than its official value.

To keep investors interested, Strategy is keeping the dividend (the regular cash payment made to shareholders) at a high 12%. Strategy's CEO Phong Le said the company's goal is for STRC to eventually trade at $99–$100, but he did not say when that might happen.

Here are the key facts:

• STRC's target price is $99–$100, but it's still trading below that
• The dividend on STRC stays at 12%
• Strategy reported an $8.22 billion net loss last quarter
• Most of that loss — $8.32 billion — came from an unrealized loss (a paper loss on assets you still own and haven't sold) as Bitcoin's price fell
• The company built a $3.75 billion cash reserve to cover payments

That $3.75 billion reserve is important. It's enough to cover more than two years of dividend payments and interest obligations, which reassures investors that Strategy can keep paying them.

Strategy also bought back $25 million of its own STRC shares at a discount (a price below the $100 par value) and plans to keep buying while the price stays below $100. Buying back cheap shares can help push the price back up toward the target.

Meanwhile, Strategy's founder Michael Saylor hinted on social media that the company may soon announce more Bitcoin purchases, posting 'Bitcoin Drive engaged.'

In short: Strategy is trying to boost confidence in its STRC stock by keeping payments high, holding a big cash cushion, and buying back shares — all while facing big paper losses tied to Bitcoin's falling price.

This is an AI-generated summary. Read the original article at: https://cointelegraph.com/news/strategy-leaves-preferred-strc-dividend-at-12-price-still-below-par?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound