Strategy (MSTR) shares rose 4.45% to $136.58 on Monday after the company introduced daily dividends on its Stretch preferred stock, announced another STRC buyback, and resumed buying Bitcoin.
Daily Dividend Schedule Begins
The first payment under the revised STRC schedule is due November 3, according to Strategy’s November 2 SEC filing. It includes dividends payable from November 1 and 2, when the new terms came into effect.
STRC previously paid dividends twice monthly, but holders will now receive payments on business days. Dividends continue to be earned on weekends and holidays and will be added to the next dividend payment.
The annualized dividend rate is 12% based on STRC’s $100 stated value for November. Strategy can reset that rate monthly as it strives to maintain the shares around $100. Shareholders approved the changes on October 28, while similar payments for STRF, STRK, and STRD are planned for January 2027.
STRC Buyback and Bitcoin Purchase
The new dividend schedule is being introduced alongside Strategy’s effort to reduce part of its outstanding preferred stock. During the week ended November 1, the company repurchased 2,092,035 STRC shares for $208.2 million using cash.
The repurchase also reduced the number of preferred shares that will receive future dividends. As of November 1, Strategy held $4.79 billion in its USD Reserve and another $132.7 million in USD Cash. These amounts covered approximately 3.3 years of the company’s dividend and interest payments, the company said.
In addition to the buyback, Michael Saylor’s company resumed buying Bitcoin after a one-week hiatus and purchased 811 BTC worth $65.5 million. This brought its total holdings to 849,327 BTC valued at $64.08 billion. The latest transaction was funded from a common stock sale that raised about $164 million from 1,178,552 MSTR shares.
According to Arkham, Strategy’s Bitcoin holdings carried an unrealized gain of approximately $919.84 million at the time of its assessment.
B. Riley Lowers Price Target
Strategy’s preferred-stock adjustments and Bitcoin holdings also featured in B. Riley’s latest assessment of the company. Analyst Fedor Shabalin lowered the MSTR price target from $195 to $180, although he maintained a Buy rating.
The revised forecast followed B. Riley’s decision to reduce its fourth-quarter Bitcoin price assumption to $82,500 from $90,000. However, the firm also recognized improvements in Strategy’s finances, including lower leverage and reduced preferred-stock obligations.
B. Riley said STRC’s return toward its $100 stated value and stronger cash reserves had improved Strategy’s financing position. The firm now sees a potential reopening of preferred-stock sales as another source of funding. Such sales could support Strategy’s Bitcoin acquisition plans while providing an alternative to issuing additional MSTR common shares.
