Strategy will maintain its preferred STRC dividend at 12% for August, despite the shares continuing to trade significantly below their $100 par value on the Nasdaq exchange.

Key Points

• Strategy confirmed the August dividend will remain at 12%, following a 50 basis-point increase implemented in July.
• STRC shares closed at $89.46 on Friday, remaining well below the $100 par value target set by CEO Phong Le.
• The company has established a $3.75 billion cash reserve to ensure dividend and interest obligations are met for over two years.
• Strategy reported an $8.22 billion second-quarter net loss, largely attributed to unrealized losses on its extensive Bitcoin treasury holdings.
• Executive chairman Michael Saylor indicated potential upcoming changes to the company's Bitcoin holdings while continuing to promote the preferred stock.

Why it Matters

The decision to hold the dividend steady highlights the company's focus on balancing income payouts with the volatility of its Bitcoin-heavy balance sheet. Maintaining a substantial cash reserve provides a buffer for investors, though the stock's persistent discount to par remains a primary concern for management.