Strategy Holds STRC Preferred-Stock Dividend at 11.5% for May

Strategy, formerly known as MicroStrategy, uses STRC preferred stock as part of its capital-raising strategy. The security carries an adjustable dividend rate intended to help keep its market price near the $100 par value. Dividend decisions are closely watched because they affect Strategy’s funding costs and signal how investors assess the company’s capital allocation and credit risk.

STRC traded below its $100 par value in July, but Executive Chairman Michael Saylor said Strategy would leave the August dividend rate unchanged at 12%. Chief Executive Officer Phong Le reiterated that management aims to guide the preferred shares gradually back toward a $99-to-$100 trading range. Following the dividend announcement, STRC closed at $89.46, remaining more than 10% below par.

MicroStrategy, now known as Strategy, has raised funds by issuing STRC perpetual preferred stock and used the proceeds to add to its Bitcoin holdings. Investors have relied primarily on dividends and the shares’ $100 par value to underpin confidence. When Bitcoin fell to about $73,000, STRC dropped below $99, raising concerns about whether the company could continue raising capital, paying dividends and maintaining its Bitcoin treasury strategy.

As of July 19, 2026, STRC had extended its decline from below $99 to $75. It had also traded at $88–$89 during the period, while its annualized dividend yield rose to about 11.5%. Strategy’s latest cash reserves were estimated to cover about 10 months of dividends, up from roughly six months previously, but the widening discount showed that retail investor confidence continued to weaken.

Strategy (MSTR), one of the world's largest corporate holders of bitcoin, raises money to buy the cryptocurrency by issuing common and preferred shares. STRC is a floating-rate perpetual preferred stock with a par value of $100 per share. Its annualized dividend rate was 11.5% in June 2026, making it an important funding vehicle for expanding the company's bitcoin holdings.

Strategy secured approval from common and STRC shareholders at its annual meeting on June 8, 2026, to shift dividend payments from monthly to twice a month, with record dates on the 15th and final day of each month. The first record date under the new schedule is June 30, with payment on July 15. The change only shortens the payment cycle and, at the time, did not alter the annual dividend rate or the company's total annual payment obligation.

Strategy, the world's largest corporate holder of Bitcoin, launched perpetual preferred stock STRC in July 2025 to raise U.S. dollar funding through share issuance and buy more Bitcoin. STRC targets a price near its $100 par value, with its high dividend designed to attract income-focused investors while allowing the company to continue expanding its crypto holdings.

Strategy said STRC's annualized dividend rate would remain at 11.5% in April 2026, ending a run of seven consecutive increases since the product's launch. With STRC's market price gradually stabilizing and approaching its $100 par value, the company will not raise the rate this month but will continue using the stock as a fundraising vehicle for future Bitcoin purchases.

Strategy, formerly known as MicroStrategy, is a key bellwether for corporate crypto treasury strategies, raising funds through common and preferred stock offerings to acquire Bitcoin. STRC is a preferred stock that pays monthly dividends. Changes to its dividend affect investor returns and reflect the company’s financing costs and capital needs amid Bitcoin volatility.

Strategy raised STRC’s annualized dividend rate by 25 basis points to 11.5% in March 2026 and has now kept it at that level for a fourth consecutive month. Meanwhile, Bitcoin fell 20% in February, dragging MSTR down 14% for the month and marking its eighth consecutive monthly decline, underscoring the divergence between preferred-stock yields and the risk profile of the common shares.