Strategy, the world's largest publicly traded corporate bitcoin holder, has kept the 11.5% dividend rate on its perpetual preferred stock STRC unchanged for the fourth straight month. The product debuted in July 2025 with a 9% rate and has undergone seven increases since then.
VWAP near par triggers hold decision
The volume-weighted average price (VWAP) of STRC in July reached $99.62, within striking distance of the $100 par value — a key metric in the product's design, where the monthly dividend reset encourages trading near par to reduce volatility. With the VWAP sitting close to the target, Strategy opted to maintain the current rate rather than push it higher.
STRC has not traded at $100 since May 14, but rebounded from a low of $97.11 to around $99.10. The next ex-dividend date is June 15. If patterns from May repeat, the stock may briefly return to par in the days leading up to the cutoff.
Stable price fuels financing machine
Maintaining STRC near $100 is critical for Strategy because it enables efficient issuance through its at-the-market (ATM) program. Proceeds feed into bitcoin acquisitions or corporate liabilities — the company recently paid down some of its 2029 convertible notes. STRC, marketed as a short-duration high-yield savings alternative, pays monthly cash distributions and resets rates monthly to keep price swings in check.
Any sustained deviation from par could hamper future ATM issuances, making the dividend hold a tactical move tied directly to Strategy's capital-raising ability.
Saylor's Sunday post and the bitcoin selloff question
Executive Chairman Michael Saylor continued his Sunday tradition with a "Working Better" post. Amid Strategy's massive bitcoin holdings (roughly 500,000 BTC), investors are watching whether the firm will eventually sell coins to cover dividends or debt, or keep relying on security offerings to expand its stash. The maintained 11.5% rate signals near-term liquidity is adequate, but the path ahead hinges on bitcoin price trends and market appetite for new STRC issuances.