Stockholders approved daily dividends for four Strategy preferreds. STRC is first, and it closed Oct 30 at $99.13 after 117 straight closes under $100. Strive's stock fell much harder than its preferreds.
Strategy stockholders approved daily dividends for STRF, STRC, STRK, and STRD at the Oct 28 special meeting, and the STRC change is the one that matters first. It takes effect Nov 1. Per Strategy's 8-K, the November daily dividends become payable and the Nov 15 dividend will not be paid. STRF, STRK, and STRD follow on Jan 1, 2027. Daily payment sets a schedule only. These are perpetual preferreds, and dividends stay at Strategy's discretion. STRC closed Oct 30 at $99.13, its 117th straight close under $100. Its last close at or above $100 was May 14. The stated rate is 12.00% on the $100 stated amount. The current yield at this price, which is the annual dividend divided by what you pay, is 12.11%.
In its Oct 26 8-K, Strategy reported repurchasing 2,068,459 STRC shares for $204.9M, with no bitcoin purchases or sales and no ATM sales for Oct 19 to 25. It holds about 848,517 BTC and a $4.83B USD Reserve. Our read: the reserve is large enough that the buyback is not a strain. Cash alone covers 3.4 years of preferred dividends, which run $1.47B a year at current rates. bitcoin and cash together cover 47.9 years, and the breakeven bitcoin return is 2.09% a year. MSTR's mNAV, which is enterprise value divided by bitcoin held, fell to 1.13x from 1.18x on Oct 23. Its one-year range is 1.03x to 1.46x.
bitcoin fell 4.81% to $77,180. MSTR fell 10.60% and ASST fell 23.39%, with ASST's mNAV dropping to 1.34x from 1.58x. Strive's last reported purchase, 6,182 BTC from Oct 17 to 23, averaged $82,732 per bitcoin, above the Oct 30 close. That brought holdings to 43,000 BTC. The preferreds moved less. SATA fell 3.22% and SATS fell 1.72%. Among Strategy's, STRK fell 2.09%, STRC fell 0.23%, STRF rose 0.22%, and STRD rose 0.06%. On Oct 26 we cut SATA to B from BB− and SATS to B− from B+, both on Positive watch. Strive also filed for a new $1.0B ATM program for SATS.
Whether STRC closes at or above $100 once daily payments begin on Nov 1. Shares short in STRC rose 55.21% in the FINRA report as of Oct 15, with 1.8 days to cover. That is the most recent short data available, and it predates this week's approvals and the buyback.