Strategy, recognized as the largest publicly traded corporate holder of bitcoin, has upheld its 11.5% dividend rate on its perpetual preferred stock, Stretch (STRC), for the fourth consecutive month without any increases. This stability highlights the company’s commitment to maintaining a robust dividend amidst fluctuating market conditions.
Since its launch in July 2025, STRC has seen a total of seven dividend increases, starting with a 9% rate. The recent decision to keep the dividend rate steady can be attributed to the stock’s volume-weighted average price (VWAP), which recently hit $99.62, keeping the shares within reach of their $100 par value. This par value is integral to the design of the product, aiming to minimize price volatility while promoting liquidity.
Strategy markets STRC as a short-duration, high-yield savings alternative, with monthly cash distributions that adjust each month to encourage trading near par value. However, despite these efforts, STRC has not traded at its $100 par value since mid-May, seeing a recent dip to as low as $97.11 before rebounding to approximately $99.10. Investors attention is now focused on the upcoming ex-dividend date on June 15, when those who hold shares will qualify for the next dividend payment. Observers note that STRC may experience a price surge leading up to this date, reminiscent of trading patterns seen in May.
The stabilization of STRC’s price around $100 is crucial for Strategy, as it enables the company to efficiently execute its at-the-market (ATM) share issuance program. This tactic is essential for raising capital that could be used to acquire more bitcoin or to settle corporate liabilities, including debt obligations like the recently settled 2029 convertible notes.
In the background of these developments, Executive Chairman Michael Saylor has continued his tradition of sharing updates on social media, recently posting the phrase “Working Better.” This message resonates with investors who are evaluating the company’s strategy regarding its bitcoin reserves, especially amid rising speculation about whether Strategy will eventually liquidate some bitcoin to meet upcoming debt or dividend responsibilities or if it will persist in using capital raised through securities to further bolster its bitcoin holdings.
