Strategy Inc. Holds STRC Dividend Steady Despite Discounted Trading

Executive Chairman Michael Saylor has positioned the 12% yield as an income-generating tool, yet the company’s internal policy now accounts for broader market conditions—including Bitcoin volatility and credit spreads—rather than automatically hiking rates when the stock dips. This change in approach follows a period where the company previously raised rates in response to price volatility, but management now insists that dividend adjustments require evidence of sustained trading near the $100 par value.

To bridge the price gap, Strategy has turned to aggressive buybacks. Between July 20 and July 26, the firm repurchased 288,930 STRC shares at an average price of $86.53, utilizing a portion of its $1 billion authorization. By retiring these shares at a discount, the company reduces its future cash distribution obligations without increasing the recurring cost of its $10.46 billion in outstanding preferred value.

Supporting these commitments is a $3.75 billion U.S. dollar reserve, which management estimates covers roughly 2.1 years of preferred dividends and debt interest. While the company faces pressure from an $8.22 billion second-quarter net loss—largely tied to unrealized Bitcoin depreciation—it continues to utilize Bitcoin sales to replenish cash reserves. As of late July, Strategy held 843,775 BTC, and while CEO Phong Le maintains a goal of returning STRC to the $99-$100 range, the company has provided no specific timeline for achieving that objective.