STRC Hits $100 on 34% Rebound; Can MicroStrategy’s Dividend Stock Hold?

Stretch (STRC), MicroStrategy’s preferred stock carrying a 12% dividend, hit $100 on Wednesday for the first time since May. The company had put $208.2 million into repurchasing the shares over the preceding week.

Those who purchased STRC at its closing low of $74.57 on June 26 now see a roughly 34% gain from the price move. A portion of the buyback funds was generated by selling new common stock, diluting the holdings of all existing shareholders.

What Drove STRC Back to the $100 Mark on Wednesday?

A broader rally in US equities helped lift the stock. By midday, the Dow Jones Industrial Average had risen roughly 2.9% following Democratic victories in both houses of Congress.

On his Truth Social platform, President Donald Trump celebrated the market performance.

“Stock Market just hit another Record High — 91 Days in just a short period of time — Less than two years. Your 401(k)s are through the roof,” he wrote.

The president did not specify which index he was referring to. At midday, neither the S&P 500 nor the Dow were above their respective record closing levels.

Strategy, the name MicroStrategy now operates under, saw its common stock (MSTR) rise roughly 6.7% to $144.67.

Will MicroStrategy’s Dividend Stock Maintain the $100 Level This Time?

STRC is a preferred share that has no set maturity. Since the firm authorized daily dividend distributions, it has been paying a 12% annual cash dividend on every business day.

The company adjusts that dividend rate on a monthly basis and seeks to keep the stock trading in a $99-to-$100 band. Strategy can also issue new STRC shares into the market gradually to obtain cash. A filing from November 2 shows $17.5 billion in untapped STRC issuance capacity, with none sold during the prior week.

In October, investor Peter Schiff had claimed that Strategy had lost its issuance channel. For its part, the company funded the recent buyback in part through sales of new MSTR common stock.

Strategy itself states on its STRC information page that the dividend is not assured and could drop sharply. The company also notes the shares are not collateralized by its Bitcoin holdings.

The prior instance of STRC hitting $100 lasted for four trading days in mid-May before a decline in bitcoin pulled it lower. MicroStrategy owns 849,327 BTC, representing roughly 4% of the total circulating supply. An upcoming Monday filing will show if the recent $100 price triggers fresh STRC issuance or more buybacks.