Strategy (MSTR) shares rose 4.45% to $136.58 on Monday after the company introduced daily dividends on its STRC preferred stock. The company also bought back STRC shares and resumed Bitcoin purchases, while B. Riley cut its price target.
Strategy (MSTR) shares rose 4.45% to $136.58 on Monday, as the company introduced daily dividends on its Stretch preferred stock. The gain followed another STRC buyback and a return to Bitcoin buying.
Strategy switches STRC to daily dividends
The first payment under the revised schedule is due November 3, according to Strategy's November 2 SEC filing. It covers dividends payable from November 1 and 2, when the new terms took effect.
STRC used to pay twice monthly, but holders now receive payments on business days. Dividends still accrue on weekends and holidays and are added to the next payment.
The annualized dividend rate is 12% based on STRC's $100 stated value for November. Strategy strives to keep the shares around $100 and can reset the rate monthly. Similar payments for STRF, STRK and STRD are planned for January 2027.
Strategy repurchases $208.2 million in STRC
During the week ended November 1, the company repurchased 2,092,035 STRC shares for $208.2 million using cash. As of November 1, Strategy held $4.79 billion in its USD Reserve and another $132.7 million in USD Cash, which the company said covered approximately 3.3 years of dividend and interest payments.
Strategy also bought 811 BTC for $65.5 million after a one-week pause, bringing total holdings to 849,327 BTC valued at $64.08 billion. A common stock sale that raised about $164 million from 1,178,552 MSTR shares funded the purchase.
B. Riley lowers its MSTR target
Analyst Fedor Shabalin lowered the MSTR price target from $195 to $180 but kept a Buy rating. B. Riley cut its fourth-quarter Bitcoin price assumption to $82,500 from $90,000.
The firm also pointed to lower leverage and reduced preferred-stock obligations at Strategy. It sees a potential reopening of preferred-stock sales as another funding source, one that could support Bitcoin purchases without issuing more MSTR common shares.
Source: CoinGape
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