Strategy left the dividend on its STRC preferred shares unchanged for August, holding the annual rate at 12% rather than raising it again. The shares closed July 31 at $89.46, a price more than 10 points below the security's $100 stated amount.
Executive Chairman Michael Saylor confirmed the rate on Saturday, posting on X to describe STRC as a way to "stretch your income." A day earlier, CEO Phong Le had told investors that management's "corporate objective is for STRC to trade at $99-$100 over time," without specifying when that might happen.
Stretch Dividend Rate maintained at 12.00% for August 2026. $STRC pic.twitter.com/HaBpi2vEJa
— Michael Saylor (@saylor) August 1, 2026
July's recovery fell short of the $100 target
STRC reached as low as $71.25 during June, according to Google Finance data. A 50-basis-point dividend increase on July 1, combined with some stabilization in Bitcoin prices, helped the shares recover. Strategy also sold a portion of its Bitcoin holdings to fund dividend payments, which gave the preferred stock additional support. The result was a 5.42% price gain for July, but the shares still closed at $89.46.
At that price, the $12 annualized payout based on the $100 stated amount produces an effective yield of about 13.41%, per data on Strategy's website. The 30-day average trading volume stood at $226.1 million, with 52% historical volatility over the same period.
Rate decisions changed in June
Strategy revised its rate-setting framework on June 29. Under the new approach, management reviews STRC's market price relative to par alongside credit spreads and cash reserve coverage. The company also factors in the potential cost of higher cash commitments on the overall capital structure. The filing explicitly states that a below-par price alone will not trigger a dividend increase.
That revision is the core reason no hike arrived this month. Under the previous approach, July's discount would likely have produced another increase. Strategy said it plans to maintain the 12% rate until STRC reaches "sustained, healthy trading" near $100. The company has not provided a target date.
Buybacks carry the price-support burden
Between July 20 and July 26, Strategy repurchased 288,930 STRC shares for approximately $25 million, at an average price of $86.53 per share. That average represented a 13.47% discount to the $100 stated amount. About $975 million remains under the company's $1 billion preferred-securities repurchase authorization, which carries no fixed expiry date.
Management said it plans to buy more STRC at larger discounts and reduce that activity as the shares approach par. Each repurchase below par lets the company retire $100 of stated value for less than $100 in cash. A dividend increase, by contrast, would raise the annual cash cost across more than $10.46 billion in outstanding STRC stated value. Strategy funded the first $25 million repurchase through common-stock sales while keeping Bitcoin purchases paused.
A $3.75 billion reserve and an $8.22 billion quarterly loss
Strategy reported a $3.75 billion U.S. dollar reserve as of July 26, which the company said covers approximately 2.1 years of preferred-stock dividends and interest on outstanding debt. Cash from that reserve can only go toward those obligations unless the board approves a different use.
Strategy paid $400.7 million in preferred dividends during the second quarter of 2026, compared with $49.1 million in the same period of 2025. Cumulative preferred distributions have exceeded $1 billion. The company also reported an $8.22 billion net loss for the quarter, driven primarily by an $8.32 billion unrealized loss on its Bitcoin holdings. The accounting loss did not represent an equivalent cash outflow, but the preferred dividends require payment in U.S. dollars.
Strategy sold approximately $218.4 million of Bitcoin in 2026 through July 26 to help cover part of those costs. As of that date, the company held 843,775 BTC at an average acquisition cost of about $75,476 per coin. Strategy valued that position at $54.77 billion based on Bitcoin's July 27 price, compared with its $63.69 billion original cost.
On August 2, Saylor posted "Bitcoin Drive engaged" on X alongside the company's Bitcoin treasury chart. The post did not include an SEC filing or purchase confirmation. A verified transaction would require a separate regulatory disclosure.
STRC shareholders now receive two payments per month, after holders approved a shift from monthly to semi-monthly distributions in June. Record dates fall on the 15th and the final day of each month. July was the first month under the semi-monthly schedule; August is the second. Strategy has declared a $0.50-per-share payment for August 15 to holders on record as of July 31.
Strategy expects current distributions to be treated as returns of capital for U.S. federal tax purposes, to the extent of an investor's tax basis, though the company advises investors to seek individual guidance based on their own circumstances. STRC is not a bank deposit and does not carry FDIC insurance. The security holds only a preferred claim on the company's residual assets, not a direct claim on its Bitcoin holdings.
Matvii Diadkov
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