Strategy's STRC Preferred Stock: June 30 Ex-Dividend Date and Dividend Rate Reset Take Center Stage

Investors are keeping a close eye on Strategy's perpetual preferred stock, STRC, as two significant events converge on June 30 — an ex-dividend date and a closely watched monthly dividend rate reset. The stock is currently trading near $73, approximately 27% below its $100 par value, and slipped an additional 3% during Friday's pre-market session.

The first event is the ex-dividend date itself. Shareholders who hold STRC before June 30 will qualify for the upcoming dividend payment, while those purchasing on or after that date will not be eligible. June 30 simultaneously serves as the record date. Qualified investors are set to receive STRC's first semi-monthly dividend of $0.48 per share, with the payment scheduled for July 15.

Under normal market conditions, a stock tends to dip by approximately the size of its dividend once it begins trading ex-dividend. In STRC's case, a $0.48 per share adjustment on a stock trading around $73 represents less than 0.7% — a relatively minor figure, especially considering the stock has already been experiencing daily swings of 2–3%. As a result, the ex-dividend date is unlikely to serve as a major downside catalyst on its own.

The more significant event is the monthly dividend rate reset. STRC is a perpetual preferred stock, meaning it carries no maturity date and features a periodically adjustable dividend rate. Strategy has held that rate steady at 11.50% for four straight months, even as the stock has continued to trade well below par value.

However, the market is telling a different story. Based on a one-month volume-weighted average price (VWAP) of $91.46, and with shares now sitting at $73, the stock's effective yield — calculated as the annual dividend relative to current market price — has risen to roughly 15%. This gap signals that investors are pricing in considerably more risk than the current dividend rate reflects.

Given this context, market participants widely expect Strategy to bump the dividend rate from 11.50% to at least 12% or 12.50% in the upcoming reset. A modest increase, however, may do little to drive a sustained recovery in the stock's price. Analysts and investors alike suggest that any meaningful return toward par value will depend more heavily on Bitcoin's performance than on incremental adjustments to the dividend rate.

Adding to the pressure, Strategy's common stock (MSTR) is trading around $85 — more than 84% below its all-time high reached in November 2024. That dramatic decline continues to weigh on Strategy's Bitcoin-leveraged capital structure, creating a challenging environment for both MSTR and STRC holders as the June 30 deadline approaches.