Strategy Raises STRC Dividend to 11.5% as MSTR Logs Eighth Straight Monthly Decline
- Strategy raised STRC dividend to 11.5% to keep shares near $100 amid crypto market weakness.
- The company is shifting from common stock to preferred shares to fund Bitcoin purchases.
- Strategy now holds 717,722 BTC even as Bitcoin trades below its average cost basis.
Strategy increased the dividend on its STRC preferred shares as crypto markets extended their decline. The company lifted the annualized payout by 25 basis points to 11.5% for March 2026. Executive Chairman Michael Saylor oversees the move as part of a broader capital shift. The adjustment marks the seventh increase since STRC began trading in July 2025.
The decision comes as bitcoin prices remain under pressure and equity markets show weakness. Strategy’s common stock has struggled alongside the broader crypto downturn. Meanwhile, the preferred series continues to trade close to its $100 par value. The latest increase aims to maintain that stability.
STRC Dividend Adjusted to Hold Par Value
STRC operates as a perpetual preferred stock with monthly cash distributions. The company sets the dividend rate each month. This structure encourages trading near the $100 reference level. It also seeks to reduce price swings during volatile periods.
Although STRC closed at $100 on Friday, it traded below par earlier in February. Crypto markets recorded sharp losses during that period. Therefore, management raised the payout to support the share price. The next dividend payment is scheduled for March 31 for shareholders of record.
Strategy describes STRC as a short-duration high-yield savings instrument. The security features a variable yield that changes monthly. Because it is perpetual, the company has no obligation to redeem it. The flexible rate allows management to respond quickly to market stress.
Shift Toward Preferred Capital
Earlier this year, Strategy signaled a transition away from common equity issuance. The firm plans to rely more heavily on preferred shares to fund bitcoin purchases. Last year, its preferred offerings raised $7 billion. That amount represented roughly one-third of the broader preferred market.
Management expects structured products to remain central this year. Consequently, the company intends to reduce reliance on common stock. This shift follows significant volatility in MSTR shares. Investors have reacted sharply to bitcoin price movements and quarterly earnings results. Strategy recently used preferred stock to buy more Bitcoin while reducing exposure to market volatility.
Market Pressure Weighs on Common Shares
Strategy’s common stock has faced sustained declines. MSTR closed February with its eighth consecutive monthly drop. The shares fell 14% during the month as bitcoin slid nearly 20%.
Bitcoin has lost 23.2% year to date. At the same time, the Bitwise Bitcoin Standard Corporations ETF has declined 16.1%. That fund tracks public companies with large bitcoin holdings.
Strategy reported a net loss of $12.4 billion for the fourth quarter of 2025. Revenue rose 1.9% year over year to about $123 million. However, investors pushed the stock down 13% following the results.
The stock once traded as high as $543 in November 2024. It later fell below $300 in February 2025. On Friday, shares closed at $129.50, down roughly 75% from the peak.
Bitcoin Holdings Continue to Grow
Despite market pressure, Strategy continues to accumulate bitcoin. The company purchased 592 BTC during the week of February 16. That acquisition cost approximately $39.8 million.
Total holdings now stand at 717,722 BTC. The recent purchase marked the company’s 100th BTC acquisition. However, bitcoin trades below Strategy’s average purchase cost of $76,020 per coin.
