Key Takeaways
- Strategy has raised the dividend rate for its STRF stock from 9% to 10%.
- All four of the company’s preferred stocks will pay dividends on Sept. 30.
- CEO Michael Saylor said: “Bitcoin is a marathon, not a sprint.”
In a post on X, Strategy Executive Chairman Michael Saylor likened holding Bitcoin to a long-distance race.
At the same time, Strategy has increased the dividend rate on its perpetual stretch preferred stock (STRF) to 10% per annum.
Bitcoin Is a Marathon
Taking to X on Thursday, Sept. 4, Saylor emphasized that, rather than expecting quick returns, BTC investors should prepare for a sustained, strategic run. “Bitcoin is a marathon, not a sprint,” he stated.
The metaphor underscores Saylor’s conviction in Bitcoin’s long-term value and his belief in steady accumulation over time.
STRC Dividend Jump
In an 8-K form filed on Sept. 2, Strategy announced that it raised the annual dividend rate on STRC from 9.00% to 10.00%.
The company’s board also declared cash dividends payable at the end of the month for its four preferred stocks.
STRF holders will receive $2.50 per share, STRC will pay out $0.833 per share, STRK $2.00 per share, and STRD $3.056 per share.
Strategy’s Diversified Yield Options
Following the adjustment to STRC’s dividend rate, the stock now matches STRF’s fixed rate.
Meanwhile, STRK offers a lower fixed yield of 8%, but comes with the option to convert into MSTR common stock at the end of each quarter, offering equity upside.
STRD, which will deliver its first dividend payment on Sept. 30, also offers a 10% yield based on its face value of $100. However, because STRD debuted at $85 and continues to trade below par, the stock’s the market yield can exceed 11–12%.
The discrepancy between STRD’s face value and its market price reflects a risk premium. Unlike with its other stocks, if Strategy is unable to pay STRD dividends, shareholders won’t accrue additional yield the following quarter. In the case of a restructuring or liquidation, STRD holders are also at the back of the line to get paid.
James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
