MicroStrategy’s 12% dividend stock, Stretch (STRC), touched $100 on Wednesday for the first time since May. It got there after the company spent $208.2 million buying back the shares in the prior week.
Investors who bought at the June 26 closing low of $74.57 are now up about 34% on price alone. Part of the cash behind the buyback came from selling new common shares, which shrinks every existing owner’s slice.
Why Did STRC Return to $100 on Wednesday?
US stocks rallied alongside it. The Dow Jones Industrial Average jumped about 2.9% by midday after Democrats won both chambers of Congress.
President Donald Trump celebrated the rally on Truth Social.
“Stock Market just hit another Record High — 91 Days in just a short period of time — Less than two years. Your 401(k)s are through the roof,” he wrote.
Trump did not name an index. By midday, neither the S&P 500 nor the Dow traded above its record close.
Strategy, as MicroStrategy is now called, saw its common stock (MSTR) climb about 6.7% to $144.67.
Can MicroStrategy’s Dividend Stock Hold $100 This Time?
STRC is preferred stock with no maturity date. It pays a 12% yearly dividend in cash every business day since the company approved daily dividend payments.
Strategy resets that rate monthly and aims for a $99 to $100 trading range. It can also sell new STRC gradually into the market to raise cash. Its November 2 filing shows $17.5 billion of unused STRC sale capacity, with none sold last week.
Peter Schiff argued in October that Strategy had lost its issuance channel. Meanwhile, the latest buyback was paid partly with money from new MSTR share sales.
Strategy’s own STRC page warns the dividend is not guaranteed and could fall significantly. The shares are not backed by its Bitcoin.
The last time STRC reached $100, it held there for four sessions in mid-May before sliding as bitcoin fell. Strategy holds 849,327 BTC, about 4% of all supply. Monday’s filing will show whether $100 brings fresh STRC sales or more buybacks.
