Strategy, recognized as the largest publicly traded corporate holder of bitcoin, has confirmed that it will maintain the 11.5% dividend rate on its preferred stock, Stretch (STRC), for the fourth consecutive month. This decision reflects the company’s ongoing efforts to balance yield stability with its bitcoin acquisition strategy.
Since its launch in July 2025, STRC has experienced seven dividend increases, starting with a 9% rate. The current dividend rate has been sustained after the stock’s volume-weighted average price (VWAP) reached $99.62, keeping it close to its $100 par value, which is a critical aspect of its design.
STRC is marketed as a short-duration, high-yield savings alternative, offering monthly cash distributions. The dividend rate is reset each month to encourage trading near par value and reduce price volatility. Although STRC has not traded at its $100 par value since May 14, it recently recovered from a low of $97.11 to around $99.10.
The next ex-dividend date, which determines eligibility for the upcoming dividend payment, is set for June 15. Historical trading patterns suggest that STRC may approach its par value in the days leading up to this date.
Maintaining a stable price near $100 is crucial for Strategy, as it facilitates the efficient issuance of additional shares through its at-the-market (ATM) program. The proceeds from these issuances can be directed toward purchasing more bitcoin or addressing corporate liabilities, including recently settled convertible notes due in 2029.
Meanwhile, Executive Chairman Michael Saylor has continued his regular Sunday social media updates, recently posting the message “Working Better.” This comes as investors increasingly speculate whether Strategy might sell bitcoin to meet debt or dividend obligations, or if it will persist in using capital raised through securities offerings to expand its bitcoin holdings.
In related market developments, bitcoin and ether prices declined on Monday following a downturn in May, a month typically associated with positive returns for these cryptocurrencies. U.S. equity index futures, however, showed an upward trend.
Key points to note include:
- Crypto markets opened June on a lower note, influenced by rising tensions between the U.S. and Iran.
- Spot bitcoin ETFs experienced record net outflows totaling $2.97 billion over ten consecutive days, although derivatives data indicate a mildly bullish sentiment among institutional investors.
- Stellar’s XLM has seen significant gains recently.
Strategy has decided to keep its dividend rate on preferred stock at 11.5% for the fourth month, reflecting its strategy to balance yield stability with bitcoin investments. The company's stock price remains close to par value, which is essential for future capital raises.