Strategy Restructures Capital, Lifts STRC Dividend to 12%

Strategy shares of its Variable Rate Series A Perpetual Stretch Preferred Stock surged past $83 following a sweeping capital management overhaul.

The company instituted a new Digital Credit Capital Framework, raising the annual dividend rate on STRC to 12.00% from 11.50%. The first payouts at the new rate are scheduled for July 31 and August 15, at $0.50 per share.

The plan authorizes a $1 billion repurchase program for Digital Credit Securities, prioritizing STRC, STRF, STRD, and STRK. A parallel $1 billion buyback initiative was approved for its Class A common stock, MSTR, totaling $2 billion in buyback firepower.

To fund these obligations, Strategy authorized up to $1.25 billion in Bitcoin monetization capacity. The company holds significant reserves, with approximately $2.55 billion in cash covering roughly 17 months of preferred dividend obligations. The framework explicitly connects shareholder returns to its Bitcoin treasury strategy, allowing for limited asset sales to sustain yields and repurchases.