Perpetual preferred stock maintains price stability near $100 par value
Strategy has held the dividend rate on its perpetual preferred stock, STRC, at 11.5% for a fourth consecutive month as the security’s volume-weighted average price reached $99.62, keeping it within striking distance of its $100 par value target.
The monthly dividend reset mechanism is designed to encourage trading near par and minimize price volatility. Since STRC’s introduction in July 2025 at a 9% dividend rate, Strategy has increased the payout seven times, signaling investor demand for the security as a high-yield cash alternative.
STRC trades as a perpetual preferred stock that pays monthly cash distributions. The dividend rate resets each month based on trading patterns, with the goal of maintaining stable price near $100. On Thursday in May, the stock fell as low as $97.11 before rebounding to $99.10, illustrating the volatility the reset mechanism aims to contain.
“Working Better,” said Michael Saylor, Executive Chairman of Strategy, in a statement reflecting the company’s approach to the security.
Strategy, the world’s largest publicly traded corporate holder of bitcoin, uses STRC as part of its capital-raising strategy. When the stock trades near par value, the company can efficiently issue additional shares through its at-the-market, or ATM, program. Proceeds from those issuances are deployed to purchase bitcoin or address corporate liabilities, including debt obligations such as 2029 convertible notes.
The last time STRC traded at exactly $100 par value was May 14, 2026. Since then, the stock has remained slightly below par despite the dividend mechanism designed to anchor it. The perpetual preferred structure differs from traditional equity: STRC has no maturity date and prioritizes fixed cash distributions over capital appreciation.
At the time of publication, bitcoin traded at $73,038.00. The next ex-dividend date for STRC is scheduled for June 15, 2026.
The author owns shares in Strategy.
