Strategy, formerly MicroStrategy, raised its STRC preferred stock dividend by 25 basis points for March 2026, as Bitcoin (BTC) drawdown continues to push MSTR shares down.
Strategy is the largest corporate holder of Bitcoin (BTC). The STRC dividend rate is set monthly to keep shares trading near their $100 par value, limiting price volatility.
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Why it matters:
- Bitcoin’s drawdown has impacted both MicroStrategy’s Class A shares, MSTR, and its balance sheet.
- MSTR has declined 14.77% year-to-date (YTD) amid BTC’s drawdown. The largest cryptocurrency itself has dropped nearly 24% in the same time frame.
- STRC’s stability near $100 par contrasts with MSTR’s volatility.
The details:
- Executive Chairman Michael Saylor announced the 11.50% STRC dividend rate on X (formerly Twitter), up from 11.25% in February.
- The March increase marks the seventh STRC dividend hike since the shares began trading in July 2025.
- Strategy prices STRC dividends monthly to anchor shares near $100 par value.
- CEO Phong Le stated in February that the company plans to shift toward preferred share issuance over common stock for BTC purchases.
The big picture:
- Strategy holds the largest corporate BTC reserve globally and continues to purchase BTC despite $6.6 billion in paper losses.
- The pivot to preferred shares offers a lower-volatility capital raise vehicle compared to MSTR equity dilution.
- BTC’s current drawdown tests whether the Strategy’s accumulation model holds under prolonged price pressure.
