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Strategy’s STRC preferred stock rises as cash reserve grows

Strategy said its U.S. dollar reserve rose to $4 billion after adding $250 million, which it says covers about 2.3 years of preferred dividend obligations.

Reported · Written up by our desk · Market Structure

Strategy’s perpetual preferred stock Stretch, ticker STRC, rebounded after earlier weakness tied to bitcoin price declines, rising more than 30% from its late-June low and trading near $94, after climbing about 1% on Wednesday, according to CoinDesk.

The company has strengthened dividend coverage while supporting the preferred stock’s path toward par value, reporting it has repurchased $106 million of STRC and sought to return the shares to their $100 stated value.

Strategy also said it sold 5,226 BTC for $321 million across three transactions, reducing its bitcoin holdings from 847,363 BTC to about 842,137 BTC, with the sales intended to show it can use bitcoin to meet dividend obligations rather than treat it as idle.

CoinDesk added that Strategy increased its U.S. dollar reserve by another $250 million on Monday, bringing it to $4 billion, and that it maintained STRC’s annualized dividend rate at 12%. The outlet noted the company is eyeing Sept. 8 as a potential date for STRC to return to $100 par value, based on the time it previously took to reach par after its initial public offering.

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