Strategy keeps August Stretch Dividend Rate for STRC preferred stock at 12.00%

Strategy kept the August Stretch Dividend Rate on its STRC preferred stock at 12.00%, leaving the payout unchanged even though the Nasdaq-listed shares ended July at $89.46, more than 10% below their $100 stated amount. At that price, the $12 annualized payout based on par equates to an effective yield of about 13.41%. August is the second month that STRC dividends are being paid on a semi-monthly schedule after shareholders approved that change in June. The company had raised the rate from 11.5% to 12% for July record dates after STRC sank as low as $71.25 in June, but a revised policy adopted on June 29 means the dividend no longer rises automatically when the shares trade below par. Management now weighs STRC's market price, credit spreads, competing yields, Bitcoin volatility, reserve coverage and the broader capital structure, and Strategy said during its second-quarter results that it would keep the 12% rate until STRC shows "sustained, healthy trading" near $100. Strategy has shifted more of the support effort to repurchases, buying back 288,930 STRC shares for about $25 million at an average of $86.53 between July 20 and July 26, with roughly $975 million left under its authorization. The company also reported a $3.75 billion U.S. dollar reserve as of July 26, enough to cover about 2.1 years of expected preferred dividends and debt interest. Chief Executive Phong Le said management's objective is for STRC to trade between $99 and $100 "over time," while Michael Saylor separately posted "Bitcoin Drive engaged" on Aug. 2, though no new Bitcoin purchase had been confirmed.