HTGC declares $0.07 supplemental dividend with short interest at a one-year extreme

Hercules Capital, a business development company that lends to venture-backed technology and life-sciences firms, announced a supplemental cash distribution of $0.07 per share for the third quarter of 2026, payable on 17 November 2026. The payment is on top of any regular quarterly distribution.

For holders on the record date, the $0.07 is straightforward income. For short sellers, the mechanics run the other way: anyone borrowing HTGC shares is liable to pay a dividend-in-lieu, an amount equal to the dividend that the lender would otherwise have received, directly out of their position. With 6.1% of the free float currently sold short and roughly 10.4 million shares on loan, that obligation is not trivial at the aggregate level. The cost to borrow sits at just over 1%, and this week's increase in short interest ran 3.0 standard deviations above HTGC's typical weekly move over the past year, meaning the dividend announcement lands as new shorts are arriving in size.