Strategy's STRC preferred shares climbed to $100 on Wednesday, marking the first time the stock has reached this level since May. This milestone follows the company's shift to daily dividend payments for shareholders.
The preferred stock's recovery began from a June low of $71.25, driven by aggressive share repurchases and adjustments to STRC's dividend structure. Reaching $100 is critical because it reactivates Strategy's at-the-market offering program, allowing new STRC shares to be issued and providing a direct channel to raise capital for acquiring more bitcoin.
Strategy currently holds a $68 billion bitcoin stockpile. The ability to issue new preferred shares above $100 directly impacts the company's capacity to expand this digital asset treasury.
STRC, officially Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, is a perpetual security without a maturity date. Unlike Strategy's common shares, MSTR, which fluctuate with bitcoin prices, STRC aims to deliver stable income through cash dividends at a 12 percent annualized rate—$12 per share annually at the $100 stated value.
Shareholders approved the transition to daily dividends on Oct. 28, with 99.3 percent of votes cast supporting the change. The new daily dividend system became active Nov. 1, with initial cash distributions commencing Nov. 2. Shareholders now accrue dividends every calendar day, including weekends and holidays, with payments typically processed on the subsequent business day.
Strategy asserts that daily payments reduce price fluctuations associated with specific dividend dates, enhance liquidity, and appeal to income-focused investors.
The return to $100 reflects substantial intervention by Strategy to support STRC's market price. Between Sept. 28 and Oct. 25, the company repurchased approximately $2 billion in STRC shares, including $205 million spent on STRC shares in the week prior to Oct. 25 alone. Year-to-date repurchases for STRC total approximately $2.04 billion.
These repurchases directly reduced outstanding preferred shares and lowered Strategy's future dividend obligations. The company maintains a clear policy: repurchase STRC below $100 and avoid new issuance beneath that threshold, reversing the process when the stock trades above $100.
