- Strategy raised the annualised dividend on its “Stretch” (STRC) preferred shares by 25 basis points to 11.5% to maintain their $100 par value amid market volatility.
- The monthly-resetting security is a core part of CEO Phong Le’s shift toward using preferred capital rather than common stock to fund Bitcoin acquisitions.
- While STRC has successfully traded near its par value, Strategy’s common stock (MSTR) fell 14% in February, marking its eighth consecutive monthly decline.
Strategy, the largest listed corporate holder of Bitcoin (BTC), raised the dividend on its “Stretch” (STRC) preferred shares again, lifting the annualised payout by 25 basis points to 11.5%.
STRC is a perpetual preferred stock, meaning Strategy is not required to redeem it on a set date. Its dividend resets monthly and is paid monthly, a structure the company says is designed to keep the shares trading near their US$100 (AU$153) par value and reduce price swings.
Strategy said on its website the rate is adjusted “to encourage trading around STRC’s $100 par value” and “strip away price volatility.” The next distribution is scheduled for March 31 for shareholders of record.
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A week ago, the company marked its 100th Bitcoin buy, 592 BTC for US$39 million (AU$54 million), bringing its total holdings to over 717K BTC but with an unrealised loss of roughly US$7 billion (AU$9 billion).
Another Increase
The latest increase is the seventh since STRC began trading in July 2025. Strategy markets the security as a short-duration, high-yield alternative aimed at steady income.
The move also fits with a funding shift described by CEO Phong Le in February, when he said the company was moving away from issuing common stock to finance Bitcoin purchases and toward issuing more preferred shares.
So far, STRC has largely traded as intended, staying close to US$100 (AU$153). Strategy’s common stock, MSTR, has been weaker alongside BTC’s decline. MSTR ended February down 14% as Bitcoin fell nearly 20%, marking MSTR’s eighth straight monthly drop.
Related: Next 150 Days Make-Or-Break For Crypto, Says Swyftx Analyst Hundal
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