Microstrategy Board Raises STRC Dividend Rate to 12%, Approves $1B Buyback Authorization on July 3

According to Galaxy Research head Alex Thorn, Microstrategy announced a capital management framework adjustment on July 3, marking a significant turning point for the company. The board approved a dollar reserve policy, increased the annual dividend rate for preferred stock STRC from 11.5% to 12%, authorized a $1 billion preferred securities repurchase program, and approved a $1 billion common stock buyback authorization, effective for dividend periods with registration dates on or after July 1.

MSTR surged 12.6% to approximately $92.70 and STRC rose 12.2% to approximately $83.70 on the announcement day, following STRC's decline to a record low of $71.25 on June 26.