Strategy Holds STRC Dividend at 12% as Sept. 8 Deadline Nears

Strategy left the annual dividend on its STRC preferred at 12% while continuing an aggressive repurchase campaign that has spent $635.2 million to buy back shares. The security trades near $97 and Executive Chairman Michael Saylor set an informal Sept. 8 target to get the preferred back to its $100 par value.

Repurchases accelerated in July and August as the discount to par narrowed. Weekly repurchase outlays rose from roughly $25 million in the week of July 20 to about $151.8 million in the week of Aug. 24–30. The company has authorized $1 billion for buybacks and has about $364.8 million remaining under that program at current figures.

Strategy used proceeds from equity and Bitcoin transactions to fund the campaign. Between late June and early August the company disclosed net sales of 6,916 Bitcoin across four transactions to cover preferred obligations and repurchases. Last week, Strategy sold 4.53 million shares of its common stock, generating $602.8 million in net proceeds. Of that amount, $151.8 million went to STRC repurchases and $50.7 million covered STRC dividends.

At the same time Strategy resumed buying Bitcoin after a roughly two-month pause, spending $369.7 million to acquire 4,603 BTC. The company’s total Bitcoin holdings are now about 845,050 BTC. Strategy also added $30 million to a flexible USD cash pool.

To shore up payments tied to its preferred securities, the company set aside a $5.1 billion USD Reserve for preferred dividends and debt interest and kept a separate roughly $1.6 billion flexible USD cash pool. Management kept the dividend rate at 12% and adopted a policy barring issuance of new STRC below $100.

STRC was originally designed as a funding instrument that Strategy could use for balance-sheet activities, including Bitcoin purchases. Over the summer the company used proceeds from common equity issuance and occasional Bitcoin sales to service and repurchase STRC rather than deploying the preferred as a funding source. The resumption of Bitcoin purchases followed the rebuilding of reserve and cash buffers.

The July 2025 STRC offering was increased from an initial plan of 5 million shares to more than 28 million shares, raising $2.52 billion at stated value. By July 2026 STRC was the largest single holding across three major U.S. preferred-stock ETFs, with about $756 million of STRC held in those funds.

New competing Bitcoin-linked yield products have entered the market. One issuer expanded a SATA preferred stock that pays a 13% annual dividend and distributes daily, and another company is building a Bitcoin-credit distribution platform in Japan and the U.S. These securities differ in yield, payment frequency and capital structure from STRC.

Strategy’s repurchase cadence, remaining buyback authorization, reserve balances and the pace of future Bitcoin purchases and equity issuance will affect how much longer the company supports STRC in the lead-up to the Sept. 8 target.