- Strategy raised the STRC preferred stock dividend to 11.50% in March 2026, continuing monthly rate hikes.
- STRC’s monthly rate reset supports the ATM program, allowing Strategy to issue new shares to buy more Bitcoin.
- Investors in STRC assume corporate credit risk, as shares are not backed by Bitcoin and depend on Strategy’s balance sheet.
Michael Saylor said the March 2026 Stretch Dividend Rate for Strategy’s STRC preferred stock has increased to 11.50%. The move follows a 25 basis point rise in February to 11.25%.
Strategy issues STRC as a perpetual preferred stock and positions it as a high-yield credit instrument that pays monthly cash dividends.The company resets the STRC dividend rate each month. Saylor confirmed the latest increase in a post on X, noting the 25 basis point adjustment for March.
Monthly Rate Reset Designed to Hold Par Value
STRC’s key feature is its monthly rate reset structure. The dividend is adjusted to encourage the stock to trade near its $100 par value. If the price drops below par, the company can raise the rate to attract buyers.
STRC launched in July 2025 with a 9.00% dividend rate. Since then, the rate has increased several times. It rose to 10.75% in December 2025, then to 11.00% in January 2026, 11.25% in February, and now 11.50% in March.
The cumulative increase totals 250 basis points in roughly eight months. The changes reflect ongoing adjustments during periods of Bitcoin price volatility.
ATM Program Fuels Bitcoin Purchases
The STRC dividend structure links directly to Strategy’s at-the-market (ATM) program. When STRC trades at or above $100, the company can issue new shares under the ATM facility. Strategy can then use the proceeds to buy more Bitcoin.
If STRC trades below par, the ATM issuance slows or stops. The dividend rate reset helps support trading levels that keep the capital channel open.
Strategy has consistently used equity, convertible notes, and preferred stock to finance Bitcoin purchases. STRC adds another layer to that capital strategy by offering investors monthly income while supporting further BTC acquisitions.
Scale of the Preferred Stock Program
By early February 2026, STRC had an aggregate stated value of about $3.4 billion. Strategy’s total annual dividend obligation across its perpetual preferred shares stands near $800 million.
The company has reported holding a cash buffer of around $1.44 billion. According to public statements, that reserve covers nearly two years of dividend payments under current levels.
Credit Risk and Investor Exposure
STRC is not a bank deposit and is not insured. The preferred shares are not backed directly by Strategy’s Bitcoin holdings. Investors hold a preferred claim on the company’s residual assets, ranking behind secured creditors.
As a result, STRC investors assume corporate credit risk tied to Strategy’s balance sheet. The instrument offers high yield and monthly income, but its performance remains linked to the company’s financial health and broader Bitcoin market conditions.
Source: https://www.livebitcoinnews.com/strategy-raises-strc-dividend-to-11-50-as-bitcoin-buying-strategy-continues/
