Strategy increased dividends on its preferred security STRC to accelerate reaching a key price level. The new rate is set at 10% annually, up by 1 percentage point. The announcement was made by Michael Saylor, Chairman of the Board at Strategy.
The increase means that in September, STRC holders will receive $0.8333 per security. This decision is aimed at pushing STRC’s price toward the target of $100, which is required for the company to continue expanding its Bitcoin reserves under the current at-the-market (ATM) program. STRC is now trading around $97, up about 8% since its launch on July 30.
Bitcoin Reserves and Yield
Strategy also announced the purchase of another 4,048 BTC, bringing total reserves to 636,505 BTC. STRC shares are backed by assets with an overcollateralization ratio of 5 to 1: for every $1 of dividends, there are about $5 worth of Bitcoin. The effective yield, calculated as the ratio of the dividend to the market price, now stands at 10,3%.
Reaching the $100 mark is critical: if STRC falls below this level, the company loses the ability to issue new securities through the ATM program, which limits opportunities to further increase Bitcoin reserves.
Other Dividend Payments
In addition to STRC, the company declared dividends on other series of securities. STRD holders will receive $3.0556 per share, STRF holders will get $2.5, and STRK holders will receive $2. All payments will be made on September 30 to shareholders of record as of September 15.
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