Strategy Increases Preferred Dividend for Eighth Straight Month

Key Takeaways

Strategy increased STRC’s annual dividend to 11.50% for March 2026.
The rate is adjusted monthly to help maintain trading near $100 par value.
STRC has seen seven dividend hikes since its July 2025 launch.
Preferred shares are now central to funding Strategy’s Bitcoin purchases.
Total annual preferred dividend obligations approach $887 million.

Strategy Inc, formerly known as MicroStrategy, has raised the annual dividend rate on its STRC preferred stock – also branded as “Stretch” – to 11.50% for March 2026. The move marks a 25-basis-point increase from February’s 11.25% rate and underscores the company’s continued reliance on preferred shares to support its Bitcoin-focused treasury model.

The updated rate became effective March 1, 2026. STRC pays dividends monthly in cash, with the next payout scheduled for March 31 and the ex-dividend date expected around March 13. The security is structured as a perpetual preferred share, meaning there is no fixed maturity date requiring repayment of principal.

Preferred Yield Adjustments and Price Support

The dividend adjustment follows recent price pressure. STRC had been trading slightly below its $100 par value, recently changing hands at $98.99. Because the yield is variable and recalibrated monthly, Strategy can increase the payout to help stabilize trading around par. The mechanism is designed to limit volatility and attract buyers when the stock drifts lower.

Since launching in July 2025 with a 9.00% dividend rate, STRC has seen seven upward revisions. The payout climbed to 10.75% by December 2025 before reaching the current 11.50%, reflecting steady increases over the past several months.

The preferred stock plays a central role in Strategy’s financing structure. Rather than relying primarily on common stock issuance, the company has shifted toward preferred shares to fund additional Bitcoin purchases. Proceeds are frequently raised through at-the-market programs, providing ongoing liquidity for treasury expansion.

Risk Profile and Dividend Coverage

Despite being positioned as a yield-bearing alternative resembling a high-yield savings instrument, STRC carries corporate credit exposure. The shares are backed by Strategy’s balance sheet rather than directly collateralized by Bitcoin holdings. That distinction becomes more relevant during periods of crypto market weakness and broader macro uncertainty.

The latest dividend increase comes as Strategy’s common stock, MSTR, fell 14% in February, marking its eighth straight monthly decline. While STRC has remained close to par, equity volatility highlights the sensitivity of the broader structure to market conditions.

Strategy’s total annual dividend obligation across its perpetual preferred series – including STRC, STRD, STRF and STRK – stands near $887 million. The company reportedly holds approximately $1.44 billion in cash, providing coverage for nearly two years of dividend payments at current levels.

With another rate adjustment now in place, investors will be watching whether the higher yield is sufficient to keep STRC anchored near its $100 benchmark while Strategy continues to expand its Bitcoin treasury strategy.