Strategy’s recent decision to lift the dividend on its flagship preferred stock to 12 % has not translated into a corresponding rise in the share price. STRC is still trading in the mid‑to‑high $80s, far below the $100 target the company has set. The debate centers on whether the firm’s plan to use proceeds from Bitcoin sales to buy back shares will be enough to close that gap, or whether the move simply signals a short‑term attempt to appease investors.
Using Bitcoin to fund buy‑backs could have ripple effects on the crypto market. With Bitcoin priced at roughly $63,280 and a 24‑hour change of +1.6 %, any large‑scale sell‑off could add downward pressure, especially in a climate of extreme fear. Retail readers should keep an eye on the size and timing of the buy‑back program, as well as any shifts in Bitcoin’s price that might indicate the company’s willingness to liquidate its holdings.
For those holding or considering STRC, the high dividend offers an attractive yield, but the persistent price lag suggests that the stock’s valuation remains a concern. Investors will want to monitor how the buy‑back strategy unfolds, whether the company can sustain the dividend payout, and how regulatory developments—such as calls for modernised derivative rules—might influence the broader environment for crypto‑backed securities.