Strategy (MSTR) news: Michael Saylor and team maintain 12% dividend for STRC
Strategy said it needs $1.76 billion a year for dividends and debt service and will keep buying Bitcoin on hold.
- Strategy is maintaining the 12% dividend on its Stretch preferred stock this month, while the company has gone five weeks without a Bitcoin acquisition, marking a significant shift in investment approach.
- The company's "flywheel" strategy of issuing equity to purchase Bitcoin no longer works because the stock trades at a discount to NAV, making share issuance counterproductive.
- CEO Phong stated, "Strategy is evolving from one-way capital issuance to active capital management," while maintaining $3.75 billion in cash reserves against $1.76 billion in annual obligations.
- The Corporate Objective for STRC is to trade at $99–$100 over time, CEO Phong noted, following July's stabilization in the share price from earlier lows.
- Despite these structural shifts, Strategy remains high-risk due to reliance on volatile Bitcoin and a complex financial structure designed to fund dividends for Stretch holders.
12 Articles
12 Articles
Strategy Holds Preferred STRC Dividend at 12% as Price Still Below Par
While Strategy’s preferred STRC shares ended July well below their $100 par value, investors were told that their August dividend will not increase, holding at 12%. Executive chairman Michael Saylor delivered the news in a tweet on Saturday, continuing to pitch STRC as a way to “stretch your income.” August will be the second month that the dividend will be paid semi-monthly after shareholders approved that change in June. STRC shares closed at …
Strategy (NASDAQ: MSTR) Halts Bitcoin Purchases For Five Weeks As Business Model Shows Signs Of Strain
Strategy (NASDAQ: MSTR), the world’s largest Bitcoin treasury company, has gone five weeks without a single Bitcoin acquisition, raising serious questions about the sustainability of its core approach. The company’s last reported purchase came during the week of June 15 through June 21, when it acquired 520 BTC for $35 million. That transaction represented an average purchase price of $67,068 per coin, a figure that exceeded Bitcoin’s market pri…
Michael Saylor Has Paused Strategy's Regular Bitcoin Buys. What Does That Mean for MSTR Stock?
Key PointsStrategy hasn't bought Bitcoin in five weeks, and it recently sold some of its reserves.The company's flywheel strategy only works if the stock trades at a premium to NAV, which isn't the case right now.Strategy also needs cash reserves to fund its preferred stock dividend.10 stocks we like better than Strategy › The world's largest Bitcoin treasury company isn't buying much Bitcoin lately. Michael Saylor's Strategy (NASDAQ: MSTR) has …
Strategy stock sinks as Saylor puts Bitcoin buys on hold
Strategy shares fell 4.56% to $93.28 on July 31 after the company reported an $8.22 billion quarterly loss and prioritized restoring its STRC preferred stock to its $100 par value. Strategy stock slides after $8.22B quarterly loss Strategy stock traded…
Coverage Details
Bias Distribution
- 60% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
