Strategy’s Stride Trades 27% Below Par With June 30 Ex-Dividend Date, Yield Reset in Focus

Strategy’s perpetual preferred stock Stride, issued by the world’s largest corporate Bitcoin holder, is drawing market attention as it trades well below its $100 par value ahead of its ex-dividend date and monthly yield reset at the end of June.

CoinDesk reported on June 26 that Stride was changing hands at about $73 in premarket trading, down roughly 3% from the previous close. That puts the security about 27% below par.

Investors are watching Stride’s June 30 ex-dividend date. Holders of the stock before that date will qualify for the next dividend, CoinDesk reported. Eligible investors will receive the first payout of $0.48 a share on July 15.

A bigger variable is Strategy’s monthly dividend-rate reset. Stride is a perpetual preferred stock with no maturity, and its dividend rate is adjusted periodically.

Strategy has kept Stride’s dividend rate at 11.5% for the past four months. With the stock now trading far below par, its effective yield has climbed to nearly 15%.

Some market participants have raised the possibility that Strategy could increase Stride’s dividend rate to 12% to 12.5%. CoinDesk said, however, that a rise in Bitcoin would matter more than a dividend-rate adjustment for Stride to recover toward par.

Strategy’s common stock is also continuing to fall. The shares closed at $85.33 on June 25, more than 84% below the record high reached in November last year.

The decline is adding further strain to Strategy’s broader Bitcoin-based leveraged capital structure, CoinDesk said.