Arkham: Strategy’s STRC Dividend Obligations Not Legally Senior as Shares Trade Below Par

Arkham Analytics said Strategy’s STRC is a perpetual preferred stock with an 11.5% dividend yield and annual dividend payments of about $1.2 billion, while the company holds $1.4 billion in reserves and is not legally required to prioritize dividend payments. According to ChainCatcher, Arkham added that the share-price decline reflects market concerns about Michael Saylor’s ability to keep paying dividends and raise funding. It said the situation is unlikely to directly bring down the company but could weigh on investor confidence and financing over the long term. Market data cited by the report showed STRC briefly fell to $73 after the U.S. stock market opened tonight and was last quoted at $76.2, about 25% below its $100 par value.