TLDR
- Strategy has bumped the STRC preferred stock dividend up 25 basis points to an 11.50% annual rate for March 2026 — marking the seventh hike since STRC’s debut in July 2025.
- MSTR shares dropped 14% during February, extending its losing streak to eight consecutive months.
- STRC is structured to maintain a price near its $100 par value; shares finished Friday’s session exactly at $100.
- The company posted a net loss of $12.4 billion in Q4 2025; MSTR has plummeted approximately 75% from its November 2024 high of $543.
- CEO Phong Le indicated Strategy will shift its capital-raising approach from common equity to preferred stock for Bitcoin acquisitions.
Strategy is boosting the dividend on its STRC preferred shares once more. Michael Saylor revealed on Sunday that the annual dividend rate will climb to 11.50% for March 2026, a step up from the prior 11.25% rate.
This marks the seventh time the dividend has been raised since STRC — affectionately called “Stretch” — launched in July 2025. The shares ended Friday’s trading session precisely at their $100 par value, which is by design.
STRC functions as a perpetual preferred security with a variable monthly dividend. Each month, Strategy recalibrates the payout to maintain the stock price near $100 and minimize price swings. The shares temporarily dipped below par during February’s market volatility before bouncing back.
Strategy markets this instrument as a high-yield savings vehicle with short duration characteristics. The upcoming dividend distribution is set for March 31.
While STRC has demonstrated stability, MSTR common stock tells a different story. Strategy’s main equity fell 14% last month, marking the eighth consecutive month of losses.
Bitcoin plunged nearly 20% throughout February. MSTR generally tracks these movements — and currently that correlation is painful.
MSTR touched $543 per share back in November 2024. Friday’s close came in at $129.50. That represents approximately a 75% decline from the all-time high.
Strategy’s Shift Toward Preferred Securities
CEO Phong Le recently outlined Strategy’s evolving capital strategy. The firm plans to reduce common stock issuance and increase reliance on preferred shares for financing Bitcoin purchases.
“As we go throughout the course of this year, we expect structure to be a big product for us,” Le explained. “We will start to transition from equity capital to preferred capital.”
During 2025, STRC and other perpetual preferred instruments generated $7 billion in capital — representing roughly 33% of the total preferred securities market, Le noted.
Substantial Losses and Bitcoin Valuation Concerns
Strategy disclosed a $12.4 billion net loss for the fourth quarter of 2025 in early February. While revenue increased 1.9% year-over-year to approximately $123 million, the earnings report triggered a 13% single-day stock decline.
Bitcoin currently trades significantly below Strategy’s average acquisition price of $76,020 per coin. At press time, Bitcoin hovered around $66,000 — a substantial valuation gap.
For the year to date, BTC has declined 23.2%. The Bitwise Bitcoin Standard Corporations ETF (OWNB), which monitors companies with substantial Bitcoin holdings, has fallen 16.1% during the same timeframe.
Strategy’s most recent Bitcoin acquisition occurred during the week of February 16, adding 592 BTC for more than $39.8 million. This purchase elevated total holdings to 717,722 BTC and represented the firm’s 100th Bitcoin transaction.
