CryptoSlate
Strategy's STRC preferred stock closed at $99.92, just eight cents below its $100 stated value, after shareholders approved daily dividend accruals for four preferred securities. The vote received 99.3% support, according to preliminary results cited by Executive Chairman Michael Saylor.
Why it matters
Strategy's policy is to refrain from issuing new STRC shares below $100. A sustained return to that level could reopen a funding channel for Bitcoin purchases. The company has spent about $2 billion buying back STRC since July, with $957 million remaining under its expanded $3 billion repurchase program as of Oct. 25.
The security is central to Strategy's financing model: it raises capital from income-seeking investors that can be deployed into Bitcoin. STRC carries a 12% annual dividend rate, and its dashboard listed about $8 billion in outstanding notional value and $155 million in 30-day average dollar trading volume as of the Oct. 28 close.
Market impact
VanEck digital assets research head Matthew Sigel noted that the last time STRC regained $100, Strategy restarted at-the-market issuance the following business day to buy Bitcoin. He also cautioned that low trading volume could make company repurchases a significant influence on STRC's price. Strategy has not announced a new issuance restart.
The approved changes increase payment frequency without raising annual dividend rates. STRC's first daily dividend record date is Nov. 1, with payment scheduled for Nov. 2, subject to the amended terms taking effect. STRF, STRK and STRD are scheduled to follow in January 2027.
Frequently asked questions
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Why does STRC's $100 price level matter to Strategy's Bitcoin purchases?
Strategy's policy is to refrain from issuing new STRC shares below $100. A sustained return to that level could reopen a funding channel for Bitcoin purchases.
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How much STRC has Strategy bought back?
Strategy has spent about $2 billion repurchasing STRC since July. As of Oct. 25, $957 million remained under its expanded $3 billion repurchase program.
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What did shareholders approve for Strategy's preferred securities?
Shareholders approved daily dividend accruals for STRC, STRF, STRK and STRD. The change increases payment frequency without raising annual dividend rates.
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What is the annual dividend rate on STRC?
STRC has a 12% annual dividend rate. Dividends accrue every calendar day and are paid on the next business day under the approved arrangement.
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Has Strategy confirmed it will resume STRC issuance?
No. STRC closed at $99.92, and Strategy has not announced a restart of issuance. VanEck's Matthew Sigel also cautioned that low trading volume could amplify the effect of company buybacks on its price.
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