Strategy, the largest corporate holder of Bitcoin and the company associated with Michael Saylor, has conditionally declared daily cash dividends on its STRC preferred stock for November, while the shares continue to trade below their $100 par value.
According to a Form 8-K filed with the US Securities and Exchange Commission, the dividend plan remains subject to shareholder approval and the effectiveness of related amendments.
The company’s board declared cash dividends for each calendar day from Nov. 1 to Nov. 30. Payments are scheduled to begin on Nov. 2, and each dividend will be paid on the business day following its record date.
Annualized rate stays at 12% for November
Strategy said STRC’s annualized dividend rate would remain at 12% for November. The company added that management would continue recommending that rate until the stock shows “sustained, healthy trading near $100 per share.”
The report said daily dividends could make STRC more attractive to investors and help the stock trade closer to its $100 par value. STRC is also one of Strategy’s main fundraising vehicles for Bitcoin (BTC) purchases.
STRC remains below par value
Yahoo Finance data showed STRC down 0.2% at $99.32 as of 1:36 pm UTC on Friday, leaving it below the $100 par value.
Bitcoin holdings reach 848,250 BTC
Strategy bought 250 Bitcoin for $21.5 million last week, bringing its total holdings to 848,250 BTC. For the week ending Oct. 4, the company repurchased $176 million worth of STRC, spending more than six times as much on buybacks as on its $28 million in Bitcoin purchases during the same period.
On June 29, Strategy introduced a capital framework that allows Bitcoin sales to fund dividends and raised STRC’s annual dividend rate to 12%.