TLDR
- Strategy raised the STRC preferred stock dividend by 25 basis points to 11.50% for March 2026 — its seventh increase since STRC launched in July 2025.
- MSTR fell 14% in February, its eighth consecutive monthly decline.
- STRC is designed to trade near its $100 par value; it closed at $100 on Friday.
- Strategy reported a $12.4 billion net loss in Q4 2025; MSTR is down ~75% from its November 2024 peak of $543.
- Strategy CEO Phong Le said the company plans to shift from issuing common stock to preferred stock to fund Bitcoin purchases.
Strategy is once again turning up the dial on its STRC preferred stock dividend. Michael Saylor announced Sunday that the annual rate moves to 11.50% for March 2026, up from 11.25%.
Stretch Dividend Rate increased by 25 bps to 11.50% for March 2026. $STRC pic.twitter.com/G52tLsypsH
— Michael Saylor (@saylor) March 1, 2026
It’s the seventh dividend increase since STRC — nicknamed “Stretch” — began trading in July 2025. The stock closed Friday right at its $100 par value, which is exactly the point.
STRC is a perpetual preferred stock with a variable monthly yield. Strategy adjusts the dividend each month with the goal of keeping the price close to $100 and reducing volatility. It dipped below par during February’s turbulence before recovering.
The company describes it as a short-duration, high-yield savings account. The next dividend payout is scheduled for March 31.
While STRC has held up well, the same can’t be said for MSTR. Strategy’s common stock fell 14% in February, capping off its eighth straight monthly decline.
Bitcoin dropped nearly 20% in February. MSTR tends to move with it — and right now that’s not a great thing.
MSTR briefly hit $543 per share in November 2024. It closed Friday at $129.50. That’s a drop of roughly 75% from the peak.
Strategy’s Pivot to Preferred Capital
CEO Phong Le made Strategy’s direction clear recently. The company is pulling back on issuing common stock and leaning harder into preferred stock to fund Bitcoin acquisitions.
“As we go throughout the course of this year, we expect structure to be a big product for us,” Le said. “We will start to transition from equity capital to preferred capital.”
Last year, STRC and other perpetual preferred offerings raised $7 billion — about 33% of the entire preferred market, according to Le.
Heavy Losses and a Bitcoin Price Gap
Strategy reported a net loss of $12.4 billion for Q4 2025, announced in early February. Revenue rose 1.9% year-over-year to roughly $123 million, but that didn’t stop a 13% single-day stock drop after the report.
Bitcoin is now trading well below Strategy’s average purchase cost of $76,020 per BTC. Bitcoin was around $66,000 at time of writing — a gap that’s hard to ignore.
Year-to-date, BTC is down 23.2%. The Bitwise Bitcoin Standard Corporations ETF (OWNB), which tracks companies holding large amounts of Bitcoin, is down 16.1% over the same period.
Strategy’s last Bitcoin purchase was the week of February 16, when it bought 592 BTC for over $39.8 million. That brought total holdings to 717,722 BTC and marked the company’s 100th Bitcoin acquisition.
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