Strategy is seeking shareholder approval to pay daily dividends on its preferred securities STRC as part of its digital credit strategy. CEO Phong Le acknowledged that the company did not anticipate the significant leverage that built up in the STRC market, causing the stock to plummet to $71.25 in June. This was exacerbated when falling Bitcoin prices forced leveraged investors to sell their STRC positions. The stock has since recovered to approximately $98.41 with a 12 percent variable annual dividend rate. Strategy plans to maintain strong US dollar reserves and a repurchase policy to attract long-term holders, particularly institutional investors.
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