Strategy, formerly MicroStrategy, raised the dividend rate on its STRC preferred stock to 11.50% for Mar. 2026 — a 25-basis-point increase from February — as Bitcoin (BTC) drawdown continues to weigh on the company's Class A shares, which have fallen 14.77% year-to-date.
What Happened: STRC Dividend Hike
Executive Chairman Michael Saylor announced the new rate on X.
The increase, up from 11.25% in February, marks the seventh STRC dividend hike since the shares began trading in Jul. 2025. Strategy sets the STRC dividend monthly to keep shares trading near their $100 par value, a mechanism designed to limit price volatility.
CEO Phong Le said in February that the company plans to pivot toward preferred share issuance over common stock for future Bitcoin purchases. The shift would reduce reliance on MSTR equity dilution as a capital-raising tool.
Strategy remains the largest corporate holder of Bitcoin globally, continuing to accumulate despite roughly $6.6 billion in unrealized losses.
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Why It Matters: Pressure on BTC Model
Bitcoin has dropped nearly 24% year-to-date, dragging MSTR shares down with it. STRC's relative stability near $100 par stands in contrast.
The preferred stock approach offers Strategy a lower-volatility alternative for raising capital compared to common equity. Whether the company's accumulation model can hold under prolonged price pressure remains an open question.
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