Strategy holds STRC dividend at 12%
Customarily, Michael Saylor and team have lifted the STRC dividend when it trades sizably below par, but not this month.
In a decision not to raise the dividend, Strategy (MSTR) has maintained the 12% payout on its high-yielding preferred stock STRC, according to a report from wire material. This move comes from Executive Chairman Michael Saylor, who decided to keep the current dividend level despite the stock trading below its par value of $100. In the past, Strategy has typically increased the dividend when STRC traded significantly below par.
The company lifted the dividend by 50 basis points in July following a plunge in STRC to $71, and this dividend hike, along with the sale of some bitcoin to fund dividends and stabilization in bitcoin's price, helped STRC bounce to its current level of $89.46. However, this level is still far below the company's target of $99-$100.
Despite this, CEO Phong Le has stated that Strategy's Corporate Objective is for STRC to trade at $99-$100 over time. Despite the expectation of a 50-basis-point hike, the company has chosen not to raise the dividend this month, as it is under no obligation to do so.
Written by urgent.news from CoinDesk's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
