Strategy (MSTR) raised the dividend on its STRC perpetual preferred stock by 1 percentage point, bringing the annualized yield to 10%, Executive Chairman Michael Saylor said on X. Reflecting the change, the September monthly payout will be $0.8333 per share. The company also bought another 4,048 BTC, increasing its total holdings to 636,505 BTC.
The adjustment is aimed at attracting yield-seeking investors and nudging STRC toward Strategy’s $100 par-value target. Since its late-July debut, STRC has traded near $97. The effective yield — the dividend divided by the market price — is currently about 10.3%. Each STRC share is backed by roughly five times its promised dividend in bitcoin, a 5-to-1 overcollateralization intended to support payout stability.
Reaching the $100 par target is central to Strategy’s at-the-money (ATM) issuance program: once STRC trades at par, the company can issue additional shares to fund more bitcoin purchases, a key lever in its treasury-growth strategy.
Strategy also declared quarterly cash dividends for other preferred issues: STRD $3.0556, STRF $2.50 and STRK $2.00, all payable on Sept. 30 to shareholders of record as of Sept. 15.
Risk note: a higher advertised yield does not eliminate market or liquidity risk. STRC’s market price can move independently of its dividend, and future payouts depend on company actions and the value of bitcoin. Investors should weigh the yield against price volatility and understand how the overcollateralization mechanics work before investing.
Source: CoinDesk. Read the original coverage for full details.