Street Calls of the Week
Strategy Inc (NASDAQ:MSTR), a $97.1 billion market cap company whose stock has surged nearly 159% over the past year, announced an update Thursday to its dividend adjustment framework for its Variable Rate Series A Perpetual Stretch Preferred Stock (NASDAQ:STRC). According to InvestingPro data, while MSTR doesn’t pay dividends on common shares, the company maintains a FAIR financial health score. According to a press release statement, the company’s management now intends to recommend to its Board of Directors a dividend rate increase of 25 basis points or more for the next period if the five-day volume-weighted average price (VWAP) of STRC stock for the five trading days prior to the last trading day of the month is between $95.00 and $98.99.
The updated framework specifies that if the five-day VWAP is below $95.00, management will recommend a dividend rate increase of 50 basis points or more. If the VWAP is between $99.00 and $100.99, no change in the dividend rate is anticipated, though management may use its discretion to recommend a minor adjustment of 25 basis points depending on market and capital conditions. For VWAPs at $101.00 and above, the company intends to recommend a dividend rate decrease of 25 basis points or more, or a larger decrease if one-month term SOFR interest rates declined during the month. Any such changes are subject to a cap on rate reductions as described in the company’s prospectus and certificate of designations for STRC stock, and may also be accompanied by a follow-on offering of STRC stock.
All recommended dividend rate changes under this framework are subject to approval by Strategy Inc’s Board of Directors, and dividends will only be declared and paid if the Board determines such changes are in the best interest of the company and its stockholders.
Strategy Inc stated that it may change or suspend this dividend adjustment framework at any time at its discretion, consistent with the terms of the STRC stock.
This information is based on a press release statement included in the company’s filing with the Securities and Exchange Commission.
In other recent news, Strategy Inc announced updates to its at-the-market equity and preferred stock offering programs. The company sold 875,301 shares of its class A common stock, resulting in net proceeds of approximately $309.9 million. Additionally, Strategy reported record second-quarter 2025 results, surpassing consensus earnings forecasts and leading the company to raise its 2025 Bitcoin KPI targets for the second time this year. The company also provided a full-year 2025 financial outlook, projecting $34 billion in operating income and $24 billion in net income.
Meanwhile, H.C. Wainwright maintained its Buy rating on Strategy, with a price target of $521.00. Mizuho also raised its price target for Strategy to $586.00, maintaining an Outperform rating. However, Monness, Crespi, Hardt reiterated its Sell rating on MicroStrategy, citing concerns about the company’s premium valuation relative to its Bitcoin holdings. In a related development, Northland initiated coverage on Sequans Communications with an Outperform rating, highlighting the company’s recent Bitcoin treasury strategy.
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