Strategy Declares Daily STRC Dividends as Preferred Sits Below $100 Par
MSTR sits 78% above its 52-week low of $81.81 on light trading volume (0.2× avg).
Summary
Strategy's board declared daily cash dividends on its STRC preferred stock for every day from Nov. 1 to Nov. 30, with each payment due the business day after its record date, per an 8-K. The annualized rate stays at 12%, and management says it will keep recommending that level until STRC trades sustained and healthy near its $100 par value. STRC is at $99.32, just under par, which is the whole point of the daily structure: it makes the preferred more attractive to hold and nudges it toward par. STRC is one of the main fundraising vehicles for bitcoin purchases, so keeping it near par matters directly to Strategy's ability to keep buying BTC. The company added 250 BTC for $21.5M last week, taking holdings to 848,250 BTC, and repurchased $176M of STRC in the week ending Oct. 4 — more than six times what it spent on bitcoin that week. Watch whether STRC holds near $100 through November; if it does, the 12% rate could be revisited.
At the time of this announcement, MSTR was trading at $145.78 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $61.5B. The 52-week trading range was $81.81 to $306.16. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Cointelegraph.