Key Insights: MSTR stock fell more than 10% after the STRC dividend announcement. Strategy declared conditional November STRC dividends totaling $1 per share. Cantor Fitzgerald raised its Str
MSTR stock fell 10.43% as Strategy declared conditional daily STRC dividends for November. The Bitcoin treasury firm outlined the payments before shareholders decide whether to change the preferred security’s dividend frequency.
Michael Saylor’s company paid STRC dividends once a month under the preferred security’s original payment schedule. Earlier this year, the company changed that frequency to twice-monthly payments.
According to the company’s SEC filing, the proposed payments would total $1 per STRC share for November. The payment schedule runs from November 2 through December 1, subject to the company meeting its stated conditions.
For the first condition, Strategy (MSTR) will hold a special stockholders’ meeting on October 28 to consider the proposed amendments. At that meeting, shareholders will vote on authorizing daily dividends for the preferred security.
After the vote, Strategy must satisfy a second condition by filing the approval before November begins. The approval must also take effect before the start of that month for the conditional payment schedule to proceed.
Under that proposed schedule, dividends would cover every calendar day of the year, including weekends and holidays. Meanwhile, approval would put Strategy alongside fellow Bitcoin treasury company Strive, which already pays daily dividends on SATA.
During the same session, MSTR stock traded at $135.51, down $15.78 from its previous closing price of $151.29. Shares opened near $146 and briefly approached $147 before declining steadily through the intraday trading period.
Strategy (MSTR) Stock Price | Source: Google Finance
After that early move, the MSTR stock chart showed lower highs and lower lows, alongside several unsuccessful recovery attempts. A rebound toward $139 faded, and later attempts to recover struggled to hold around the $137–$138 range.
Following those failed rebounds, MSTR stock approached $135.50, placing it near the session’s lowest level at the latest reading.
Meanwhile, STRC traded at $98.58, a decline of 0.95%, or $0.95, compared with its previous close of $99.53. The preferred shares briefly approached $99.50 early in trading before gradually declining and moving below the $99 level.
STRC Stock Price | Source: Google Finance
As trading continued, STRC also formed lower highs and lower lows, while afternoon recoveries repeatedly faded around $98.80. The preferred stock stayed near its session lows, although its percentage decline remained smaller than the common shares’ drop.
Alongside those share price moves, Cantor Fitzgerald revised its target for MSTR stock to $208 per share. The new target compares with the firm’s previous estimate of $186 for shares in the Bitcoin treasury company. However, Cantor Fitzgerald maintained its overweight rating on Strategy in the updated assessment.
As part of that assessment, analyst Ramsey El-Assal revised the Bitcoin price assumptions used in Cantor Fitzgerald’s valuation. He increased his 12-month Bitcoin price assumption to $112,000, compared with the $98,000 assumption in his earlier calculations.
For those calculations, El-Assal factored in Strategy’s Bitcoin holdings of approximately 848,000 BTC. Cantor Fitzgerald’s revised valuation implied an enterprise value of $110 billion, up from the earlier $97 billion estimate.
Meanwhile, MSCI advanced new eligibility rules that classify companies such as Strategy as non-operating and exclude them from global indexes. The index provider plans to implement those changes starting November 30, with Strategy appearing among its potential deletions.
Under the same review, fellow Bitcoin treasury company Metaplanet also appears on the list of candidates for index deletion. However, MSCI has scheduled the final list for November 11, ahead of the changes taking effect later that month.
Against that backdrop, JPMorgan previously estimated that removing MSTR stock from MSCI indexes could trigger approximately $2.8 billion in selling.
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