Strategy Keeps STRC Dividend at 12% Despite Ongoing Discount and ATM Pause

Strategy (NASDAQ: MSTR) says its STRC Variable Rate Series A Perpetual Preferred Stock will keep an annualized STRC dividend rate at 12.00% for the August 2026 record dates. The decision comes even as STRC closed around $89.46 on July 31, still ~10–11% below the $100 par value. Saylor confirmed the dividend “rate” is held at 12% for the August 2026 period. STRC launched in July 2025 at 9% and climbed via a one-way ratchet: when STRC trades below $95, the rate increases by 0.5%, and the higher level cannot be reversed if the price later rebounds. Traders have flagged that the higher STRC dividend has not pulled the preferred back toward par; since mid-May it has not traded at par, and it reportedly fell as low as ~$71.25 in June. Because the discount has persisted, Strategy has paused new STRC issuance through its at-the-market (ATM) program. The article links STRC weakness to BTC volatility, noting the preferred share has historically moved with Bitcoin. It also cites competitor Strive’s SATA (about a ~13% yield, daily dividends, and no underlying debt) as widening the discount gap versus STRC. Analysts warn the one-way ratchet could create “finite cycles” risk if volatility stays elevated. Strategy counters with liquidity buffers (about 26 months of dividend/interest coverage) and a capital framework that includes potential buybacks tied to a bitcoin monetization approach. For crypto traders, the key watch is how STRC’s discount and issuance pause evolve alongside BTC volatility. Monitoring STRC dividend resets and any renewed buying/selling pressure around BTC-related flows may help gauge near-term sentiment, especially around record/ex-dividend timing.