Strategy, the corporate Bitcoin treasury firm formerly known as MicroStrategy, has held the dividend rate on its STRC perpetual preferred stock at 12%, according to a filing this week. The decision comes as the shares continue to trade below their $100 par value, a dynamic that draws attention from investors tracking the company's capital-allocation playbook.
The STRC preferred stock, issued earlier this year as part of a broader push to raise capital for Bitcoin purchases, pays a fixed annual dividend of 12%. But the market price has consistently lagged below par, meaning new buyers can pick up the shares at a discount while still collecting the full stated yield. That gap between the coupon and the market price is a signal worth watching.
The dividend math
By keeping the rate at 12%, Strategy is effectively offering a yield-to-cost above 12% for anyone buying the preferred below $100. For a firm that has leaned heavily on equity and convertible debt to fund its Bitcoin stack, the preferred dividend is a fixed cost — one that doesn't adjust even when the stock trades soft.
The company didn't explain the decision in the filing, but the move is consistent with its stated approach: prioritize Bitcoin accumulation over near-term shareholder returns. Strategy now holds roughly 226,000 BTC, worth over $15 billion at current prices, and has used multiple capital-markets tools to get there.
Why the discount matters
A preferred stock trading below par for an extended period can signal that the market sees the dividend as insufficient for the risk, or that investors expect the company to eventually redeem the shares at par — locking in a loss for anyone who bought above $100. Neither scenario is ideal for a firm that needs to keep its capital-raising options open.
Strategy's Bitcoin-focused strategy has drawn both ardent supporters and skeptics. The preferred dividend decision doesn't change the core thesis, but it does add a layer of scrutiny. If the discount persists, the company may find it harder to issue more preferred shares at favorable terms in the future.
The next dividend payment is due in September. Investors will be watching whether the market price of STRC creeps back toward par, or whether Strategy eventually adjusts the rate or redeems the shares. For now, the 12% stays — and the discount stays with it.
