Strategy’s STRC Preferred Slides to $87.45; Analysts Forecast July Dividend Hike
MSTR•Strategy’s preferred stock STRC fell 2.6% to $87.45 after sliding to an all-time low of $82.53, extending its gap from the $100 par value not reached since mid-May. The firm holds $1.1 billion in cash reserves, maintains an 11.5% dividend, and analysts expect a July hike to support a price rebound.
1. STRC Price Declines to All-Time Low
STRC fell 2.6% to $87.45 on Thursday after sliding to an all-time low of $82.53 earlier in the session. The product hasn’t traded at its $100 par value since mid-May, reflecting its designed post-ex-dividend price drift below par.
2. Cash Reserves and Dividend Mechanics
Strategy maintains $1.1 billion in cash reserves following debt repurchases and has held its 11.5% dividend rate for four months. When STRC trades below par, the firm can raise its dividend rate, and analysts expect a July increase to support a price rebound.
3. Common Share Performance
Strategy’s common shares also weakened, dropping to $109.36, a four-month low, and declining 32% over the past month. This equity slide outpaced Bitcoin’s drop, highlighting investor concerns over the company’s growing fixed obligations.
