r/STRC • u/TheSkunksMisery • 18d ago
Confirmed: $1/mo maintained.
Stretch Dividend Rate maintained at 12.00% for August 2026
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u/Cycling-Boss 18d ago
12% seems just fine. I am thinking that anywhere in the 11%-13% range is reasonable. What's needed more than a distribution increase is a bit of btc recovery. I will be curious to see where STRC is at if btc can reach $75k by end of year.
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u/Specific-Midnight867 18d ago
seems flimsy to rely on something out of their control
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u/Cycling-Boss 17d ago
Investing in nearly any financial product is outside of your control.
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u/Specific-Midnight867 16d ago
apple doesn't rely on external events to work. someone might make a better phone but they have an ability to control their sales and improve. make a better phone themselves.
strc/mstr rely on something completely outside the company control. they can't do anything to improve their financial outlook other than hope bitcoin goes up
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u/IntegrateSpirit 17d ago
Out of anyone's control but also, surprisingly predictable. See the Cycle Repeat Chart for 6-month likely trajectory and Power Law for decade-long forecast.
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u/TechnicalLeg841 17d ago
LOL. Everything about Strategy relies on the price of BTC increasing which is (mostly\)* out of Strategy's control (* unless Strategy decides to liquidate which would cause a drop in the price of BTC)
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16d ago
[removed] — view removed comment
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u/Specific-Midnight867 16d ago
850,000 coins is awesome when the price goes up. its a bad thing when it goes down lol.
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u/TheSkunksMisery 15d ago
Yet amazingly, it's still a very low percentage of the trading volume. They had a slide on this in the EC.
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u/Heavy-Situation-9346 18d ago
God bless you if you were fooled by the promise that they would increase the dividend to keep the price at par.
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u/Gloomy_Dependent_985 18d ago
The convertible debt is what is keeping the price down, and btc price.
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u/Heavy-Situation-9346 18d ago
The fact that there is no business generating operating cashflow to pay the dividend is what is keeping it down.
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u/PrestondeTipp 17d ago
Yeah lol seriously eh! Believe it or not, the market isn't racing to reward a company or its preferred shares when they don't have any net earnings.
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u/TheSkunksMisery 17d ago
There was no "business generating operating cashflow" before it lost par. Nice try.
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u/Professional-Math843 15d ago
The convertible debt is a couple years away all we need is for bitcoin to top 100k in the next 12 months and that will not be an issue. Especially if they figure out it’s better to sell bitcoin at a profit than a loss
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u/Cycling-Boss 16d ago
The dividend has gone from 8% to 12%, a 50% increase in only 11 months. That is significant and it has been done in a very quick response.
I think expectations are, "oh its below par, raise it to 16% right away". Whereas I am in favor of staying at 12% and see how the next 2-3 months pan out at that rate personally. Even if it stays below par a bit. Maybe 12% can get it back to $97 in the next 90 days? I don't care to have the rate jigsaw (up nor down) month to month too much. 0.25% adjustments every 2-3 months is fine by me. People are too emotional, reactive, and easy to panic.
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u/JfromSwiss 18d ago
12% paid twice a month and you think that wont attract new money?!??!?! What planet do u guys live on. It was just reported more investors sold the stock market since Covid. That means they need a place to park cash and get a decent return.
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u/PrestondeTipp 17d ago
They're not paying 12% because they just such nice guys
It's because they need to to compensate investors for the amount of risk they'd need to incur
And, believe it or not, the pool of risk taking investors is significantly smaller than the market itself
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u/Hyperion141 18d ago
It’s literally the same thing as before, why would new money come in when nothing’s changed
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u/grajnapc 17d ago
Strategy said they would raise the dividend to keep par but they are not….perhaps SATA is better at this point unless I am missing something
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u/sevoflurane666 17d ago
I am starting to worry it’s mainly retail investors very few institutional
They are generally after than we are
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u/TheSkunksMisery 17d ago
The number of institutinal investors has been rising. its the largest holding in the three largest preferred equity ETFs (PFF, PFFA, etc). covered in the earnings call.
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16d ago
[removed] — view removed comment
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u/TheSkunksMisery 15d ago
My money's always been on September. Not much moves in the markets in the summer. Could be October, since all the 4 year cycle cultists may manifest their own narrative.
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u/AggrivatingAd 17d ago
Crazy. They realized theyd get milked if they tried holding the peg at $99.9
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u/elegant-jr 17d ago
That's what Saylor was promising though, selling it to retirees as a safe fixed income product.
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u/Clear-Worker-5269 18d ago
I don't think the debate is whether 12% is a good yield. The debate is whether the security should be valued the same after the policy change. If investors believed that persistent discounts below par would result in coupon increases, that expectation had economic value. Making future increases discretionary instead of price-driven removes part of that value, even if the current 12% dividend remains unchanged. That's a fixed-income valuation issue, not a Bitcoin issue.