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Saylor Sticks to $100 Target for STRC Despite Rebound

STRC has recovered from its June low, but Strategy is still anchoring the stock to a range near $100. The dividend hike and Bitcoin volatility remain the main drivers.

By Finst News
• 2 min read
Saylor Sticks to $100 Target for STRC Despite Rebound

Key Takeaways

  • Michael Saylor said again that Strategy wants STRC to trade between $99 and $100 over time.
  • STRC has rebounded from $71.25 on June 26 to about $87.46, but it is still below the target par value.
  • Strategy lifted STRC’s dividend rate to 12 percent, while scrutiny of the funding model continues.

Michael Saylor said again on X that Strategy still expects STRC to trade in a $99 (€87) to $100 (€88) range over time. The preferred stock has bounced off its June 26 low, but it remains well under the company’s target par value.

STRC Is Climbing Back

STRC, which stands for Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, is not a standard common share. It is a perpetual preferred stock designed to trade near a $100 (€88) face value. Instead of automatically increasing the payout when the price slips below par, Strategy adjusts the dividend rate each month to help keep the stock closer to that level.

After falling to an all-time low of $71.25 (€63) on June 26, STRC rose to roughly $87.46 (€77). The move came after a new announcement about the capital framework. The recovery is notable, but the stock is still far from Saylor’s target band.

Dividend and Bitcoin Still Matter Most

On Monday, June 29, Strategy increased STRC’s dividend rate by 50 basis points to 12 percent. The higher rate applies to the July record dates and is part of the broader capital management overhaul the company outlined that same day. In the framework it shared earlier, Strategy says it reviews STRC’s trading price, the price and volatility of Bitcoin, and its cash reserves each month before making any adjustments.

That leaves the preferred stock closely tied to the crypto market. Bitcoin dropped below $60,000 (€52,700) in the same week STRC hit its low, underscoring how sensitive Strategy’s financing setup remains to Bitcoin’s price. For European crypto readers, it is another reminder that a move in Bitcoin can quickly spill over into products like STRC. That link was already visible earlier when STRC moved closely with Bitcoin.

Criticism of the Funding Model

Saylor’s latest comments follow weeks of criticism from Ripple CEO Brad Garlinghouse, who called STRC’s decline a blunt reality check for Strategy’s funding model. Rosen Law Firm has also launched a securities investigation into the company’s disclosures.

In May, Strategy sold 32 Bitcoin, worth about $2.5 million (€2.2 million), to help pay a dividend on the preferred stock. The sale shows how dependent the company remains on its Bitcoin stash to meet obligations, especially with STRC still trading below the level Strategy wants to see.

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