MicroStrategy, the company that’s become almost synonymous with its enormous bitcoin treasury, is making another move to draw in investors. They’ve decided to bump up the dividend on their STRC preferred stock offering.
Executive Chairman Michael Saylor announced the change on X this past Tuesday. The annualized dividend is now set at 10%, a full percentage point higher than before. Because of that, the monthly payout for September will come out to $0.8333 for each share.
A Growing Bitcoin Reserve
Alongside the dividend news, the company also revealed it purchased an additional 4,048 bitcoin. That brings their total holdings to a staggering 636,505 BTC. It’s a clear signal that their strategy hasn’t shifted; they’re still deeply committed to accumulating more.
Since it started trading at the end of July, the STRC share price has climbed about 8%. It’s hovering around $97 now, which is just shy of the company’s target of $100. That target is a big deal. Hitting it would mean the share has reached its par value, which is central to the whole idea behind this offering—a high-yield investment that’s supposed to be pretty stable.
Why the $100 Mark Matters
Reaching that $100 price is crucial for a specific reason. It’s tied to the company’s “at-the-money” issuance program. Basically, if STRC trades below that level, MicroStrategy can’t issue more shares through this particular program. And issuing more shares is how they raise money to buy more bitcoin.
The dividend itself is backed by what’s called a 5-to-1 overcollateralization. For every dollar promised to shareholders, the company has about five dollars worth of bitcoin held in reserve. That’s a significant cushion, and it’s probably meant to give investors a sense of security.
Right now, the effective yield—that’s the dividend compared to the current market price—sits at about 10.3%. Not too shabby in today’s market, I suppose.
Other Dividend Announcements
It wasn’t just the STRC news, either. The company declared quarterly cash dividends for several of its other series. STRD shareholders will get $3.0556 per share, STRF gets $2.50, and STRK gets $2.00. All of these are scheduled to be paid on September 30th to anyone who was on record as a shareholder as of September 15th.
So it seems like business as usual for MicroStrategy. They’re using every tool they have to keep stacking bitcoin and keeping their investors happy along the way. Whether this all works out in the long run, well, that’s the big question everyone’s watching.
