Strategy Raises STRC Dividend To 11.5% As MSTR Posts Eighth Monthly Loss

TLDR

Table of Contents

Strategy raised STRC annual dividend by 25 basis points to 11.5%.
MSTR fell 14% in February, its eighth straight monthly loss.
STRC trades near $100 par with monthly adjusted payouts.
Bitcoin dropped nearly 20% in February, pressuring MSTR shares.

Strategy raised the annual dividend on its STRC preferred stock to 11.5% while its common shares continued to fall. The increase comes as MSTR recorded its eighth consecutive monthly decline in February.

The company, led by Executive Chairman Michael Saylor, lifted the STRC payout by 25 basis points. At the same time, MSTR dropped 14% during February as bitcoin fell nearly 20%.

STRC Dividend Raised to Maintain Price Stability

Strategy increased the annualized dividend rate on its perpetual preferred stock, known as STRC or “Stretch,” to 11.5%. The adjustment marks the seventh dividend increase since the security began trading in July 2025.

STRC pays monthly cash distributions to shareholders. The dividend rate is reviewed each month and adjusted when needed. The company aims to keep the shares trading close to their $100 par value.

Strategy founder Michael Saylor said the March 2026 Stretch Dividend Rate for its perpetual preferred stock STRC has been raised by 25 bps to 11.50%, following a 25 bps increase in February to 11.25%. STRC is positioned as a short-term high-yield credit instrument paying monthly…
— Wu Blockchain (@WuBlockchain) March 1, 2026

STRC closed at $100 on Friday. However, the shares traded below par during parts of February as crypto markets weakened. The payout increase was intended to support price stability and limit volatility.

Strategy has described STRC as a short-duration, high-yield savings alternative. The structure allows the company to respond to market conditions through monthly dividend resets.

MSTR Extends Monthly Losing Streak

While STRC remained near its target price, Strategy’s common stock continued to decline. MSTR fell 14% in February, marking its eighth straight month of losses.

The drop coincided with a broad decline in bitcoin prices. Bitcoin fell nearly 20% during the month, placing pressure on companies with large bitcoin holdings.

Strategy is widely known as a major corporate holder of bitcoin. Its stock often moves in line with the cryptocurrency’s price. As bitcoin declined, MSTR shares followed the downward trend.

The company’s market performance has reflected continued volatility in digital asset markets. Investors have tracked both bitcoin price action and Strategy’s capital management decisions.

Structure of the STRC Preferred Stock

STRC is a perpetual preferred stock that pays monthly dividends. The dividend rate is not fixed long term. Instead, it is adjusted to help maintain trading near the $100 par value.

The company uses this approach to reduce price swings. When STRC trades below par, the dividend rate may be raised. When it trades above par, adjustments may also occur.

Since its launch in July 2025, STRC has generally traded in a narrow range around $100. The latest dividend increase follows earlier adjustments during periods of market stress.

Strategy positions STRC as an income-focused instrument. It is designed for investors seeking regular cash distributions rather than price appreciation.

Bitcoin Market Pressure Continues

Bitcoin’s decline in February contributed to weaker sentiment across crypto-linked equities. The nearly 20% monthly drop affected companies with large digital asset exposure.

Strategy’s business model centers on bitcoin treasury operations. As a result, movements in bitcoin prices have often influenced MSTR’s valuation.

Despite the ongoing losses in its common stock, the company continued to adjust its preferred dividend structure. The latest move keeps STRC’s annualized yield at 11.5%.