Strategy Executive Chairman Michael Saylor said the company will keep the Stretch Dividend Rate on its Variable Rate Series A Perpetual Preferred Stock, STRC, at 12.00% for August 2026. STRC was launched in July 2025 with an initial rate of 9% and has been raised for seven straight months since then. Under the stock’s dividend reset structure, the payout increases by 0.5% whenever the trading price falls below $95, and once triggered, those increases are not reversed even if the price later recovers. Strategy resets the rate every month in an effort to move STRC closer to its $100 par value and uses at-the-market issuance to raise funds for Bitcoin purchases. On July 31, STRC closed at $89.46, down from the previous close of $89.50 and roughly 10% to 11% below par. The stock had fallen as low as $71.25 in June and has not returned to par since mid-May. Strategy has also paused new STRC issuance through its ATM program, limiting that funding route for expanding its Bitcoin holdings, while maintaining a liquidity buffer that covers about 26 months of dividend and interest obligations.
Strategy Executive Chairman Michael Saylor said the company will keep the Stretch Dividend Rate on its Variable Rate Series A Perpetual Preferred Stock, STRC, at 12.00% for August 2026.
STRC was launched in July 2025 with an initial rate of 9%. The dividend rate has been raised for seven consecutive months since then.
Dividend reset structure tied to market price
Under STRC’s adjustment mechanism, the dividend rate rises by 0.5% whenever the stock trades below $95. Once an increase has been triggered, it is not reversed even if the price later moves higher.
Strategy resets the rate each month to push STRC closer to its $100 par value. The company has also used its at-the-market, or ATM, program to issue new shares and raise funds for Bitcoin purchases.
STRC still trading below its $100 par value
On July 31, STRC closed at $89.46, slightly below the prior close of $89.50. That left the stock roughly 10% to 11% under its $100 par value.
STRC fell to a low of $71.25 in June and has not returned to par since mid-May.
ATM issuance paused
Strategy has paused new STRC issuance through the ATM program. That limits the company’s ability to use this financing channel to add to its Bitcoin holdings.
The company said it has a liquidity buffer sufficient to cover about 26 months of dividend and interest obligations. In late June, Strategy also approved its Digital Credit Capital Framework, authorizing a $2 billion preferred stock and common stock repurchase and Bitcoin monetization plan.
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