Strategy (NASDAQ: MSTR) has amended its Dividend Adjustment Framework for its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), introducing a new band under which management will recommend a 25 basis-point dividend increase when STRC’s five-day volume-weighted average price (VWAP) falls between $95.00 and $98.99.
Under the revised guidelines, the company will continue to evaluate STRC’s dividend rate each month based on the five-day VWAP preceding the last trading day, with the following actions:
- Below $95.00: recommend a 50 bps increase.
- $95.00–$98.99: recommend a 25 bps increase.
- $99.00–$100.99: no change anticipated, though management may adjust by ±25 bps at its discretion.
- At $101.00 and above: recommend a 25 bps (or larger, subject to caps) decrease, tied to one-month SOFR movements or a follow-on STRC offering .
All adjustments remain subject to Board approval, and dividends will only be declared if deemed in the company’s best interests. The structured approach aims to keep STRC trading close to its $100 per share stated amount, though Strategy cautions that market conditions may affect outcomes and reserves the right to modify or suspend the framework at any time.
The announcement comes just a month after STRC’s $2.5 billion IPO broke records as the largest IPO of 2025.
Read More: Strategy’s dividend obligations top $580 million
At time of publication, STRC is up 0.8% from yesterday’s close.
