Key Highlights
- Strategy has increased the STRC preferred stock dividend rate by 25 basis points to 11.50% for March 2026 — marking the seventh consecutive increase since the security debuted in July 2025.
- The company’s common stock dropped 14% during February, extending its monthly losing streak to eight months.
- STRC maintains its design objective to trade close to its $100 par value; Friday’s closing price was exactly $100.
- The company disclosed a $12.4 billion net loss for Q4 2025; common shares have plummeted approximately 75% from the November 2024 high of $543.
- CEO Phong Le revealed plans to transition capital raising from common stock issuance toward preferred stock offerings for Bitcoin acquisitions.
Strategy continues to enhance returns on its STRC preferred stock dividend. Michael Saylor revealed on Sunday that the annual dividend rate will increase to 11.50% for March 2026, climbing from the previous 11.25% rate.
This marks the seventh time the dividend has been raised since STRC — affectionately known as “Stretch” — started trading in July 2025. The security finished Friday’s trading session precisely at its $100 par value, demonstrating the intended stability mechanism.
STRC operates as a perpetual preferred stock featuring a variable monthly dividend yield. Strategy modifies the dividend rate monthly to maintain the share price near $100 and minimize price fluctuations. The security briefly traded below par during February’s market volatility before bouncing back.
The firm characterizes it as a high-yield, short-duration savings vehicle. The upcoming dividend distribution is set for March 31.
While STRC has demonstrated resilience, Strategy’s common stock tells a different story. MSTR shares declined 14% throughout February, marking the eighth consecutive monthly drop.
Bitcoin plunged nearly 20% during February. MSTR typically moves in tandem with Bitcoin — and currently that correlation is working against shareholders.
MSTR momentarily reached $543 per share during November 2024. Friday’s closing price stood at $129.50. This represents approximately a 75% decline from its all-time high.
Shifting Capital Strategy Toward Preferred Securities
CEO Phong Le recently articulated Strategy’s evolving capital approach. The organization is reducing common stock issuances while accelerating preferred stock offerings to finance Bitcoin accumulation.
“As we go throughout the course of this year, we expect structure to be a big product for us,” Le stated. “We will start to transition from equity capital to preferred capital.”
During the previous year, STRC along with other perpetual preferred instruments generated $7 billion in capital — representing roughly 33% of the total preferred securities market, Le noted.
Substantial Quarterly Losses and Bitcoin Cost Basis Challenge
Strategy disclosed a net loss totaling $12.4 billion for Q4 2025, revealed in early February. While revenue climbed 1.9% compared to the prior year to approximately $123 million, the earnings announcement triggered a 13% single-session stock decline.
Bitcoin currently trades significantly below Strategy’s average acquisition cost of $76,020 per BTC. At the time of publication, Bitcoin was trading around $66,000 — creating a substantial unrealized loss position.
For the year-to-date period, BTC has declined 23.2%. The Bitwise Bitcoin Standard Corporations ETF (OWNB), which provides exposure to companies with significant Bitcoin reserves, has fallen 16.1% during the same timeframe.
Strategy’s most recent Bitcoin purchase occurred during the week of February 16, when the company acquired 592 BTC for more than $39.8 million. This transaction elevated total holdings to 717,722 BTC and represented the firm’s 100th Bitcoin acquisition event.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
