Bitcoin Treasury Firm Strategy Keeps STRC Dividend at 12%

Crypto News

Strategy Inc., the Bitcoin (BTC) treasury company, has kept the annualized dividend on its STRC preferred stock at 12% for August 2026, according to the company’s official STRC disclosure. The decision leaves the payout unchanged even though the Nasdaq-listed security finished July at $89.46, more than 10% below its $100 stated amount and far from the par level management wants to defend. At that close, the $12 annual payment tied to the $100 stated value produces an effective yield of about 13.41%. Executive Chairman Michael Saylor promoted the August rate on Aug. 1 as a way to “stretch your income,” while the company’s schedule now sets record dates for the 15th and the last calendar day of each month. The rate decision also reflects a June 29 policy change: management no longer treats a discount to par as an automatic trigger for another increase, instead weighing STRC’s market price, credit spreads, competing yields, Bitcoin volatility, cash-reserve coverage and the wider capital structure. That framework helps explain why July’s weakness did not produce a further 50-basis-point move after the prior increase from 11.5% to 12%. Company statements said the 12% level should remain while STRC seeks “sustained, healthy trading” near $100. The approach limits additional cash obligations across more than $10.46 billion of outstanding STRC stated value, while leaving buybacks as the main near-term support tool. Between July 20 and July 26, Strategy repurchased 288,930 STRC shares for about $25 million, an average of $86.53 and a 13.47% discount to par. About $975 million remains under the $1 billion repurchase authorization. The company funded that initial repurchase tranche while increasing its dollar reserve and pausing Bitcoin purchases, using proceeds from MSTR common-stock sales rather than fresh STRC issuance. Those purchases retire stated value below par but also use capital that could otherwise support dividends, debt interest or Bitcoin acquisitions; STRC is a yield decision, not a bet on an all-time-high rally.

The investor-facing message around STRC is becoming just as important as the rate itself. Michael Saylor’s Aug. 1 post framed the unchanged 12% dividend as an income product, and August marks the second full month of semi-monthly payments after shareholders approved the schedule change in June. Strategy has already declared $0.50 per share for the Aug. 15 payment to holders of record as of July 31, with future distributions still requiring board or committee approval. STRC’s market action shows the tension. The shares closed at $89.46 on July 31 and recorded a 5.42% gain for July, but they remain well under the $100 level that Chief Executive Phong Le described as a corporate objective “over time.” Friday volume was about two-thirds of the daily average, suggesting that the weekend announcement may not be fully priced until Nasdaq trading resumes. The security is not a dollar-pegged liability and should not be confused with algorithmic-stablecoins, because holders have an unsecured preferred claim rather than a redemption right against stable assets. It is also not an airdrop; payments are declared distributions tied to a capital-raising instrument. Strategy’s broader balance sheet adds the risk. The company reported an $8.22 billion second-quarter net loss, largely from an $8.32 billion unrealized loss on Bitcoin holdings, while preferred dividends rose to $400.7 million from $49.1 million a year earlier. To support payouts, Strategy built a $3.75 billion dollar reserve that covers roughly 2.1 years of expected preferred dividends and debt interest. It also sold about $218.4 million of Bitcoin through July 26 for part of those obligations and held 843,775 BTC at an average cost near $75,476 as of July 26. Saylor’s separate “Bitcoin Drive engaged” post raised speculation about another Bitcoin treasury update, but only an official filing or company announcement would confirm a purchase or sale.

COINOTAG’s reading is that Strategy is now defending STRC’s credibility through cash management rather than automatic rate increases. The company’s official disclosure and SEC-weekly reporting are the primary sources to watch for reserve changes, Bitcoin sales and repurchase activity. COINOTAG aggregate market data shows the Fear & Greed Index at 28/100, or Fear, while Bitcoin accounts for 69.6% of the COINOTAG-tracked market capitalization of $1,819,493,106,357. In that risk-sensitive tape, income instruments linked to Bitcoin volatility must compete with plain altcoin exposure for marginal capital. The key question is whether the $3.75 billion reserve, discounted buybacks and paused accumulation can keep STRC’s 12% payout credible without forcing more treasury sales.