Strategy (MSTR) Proposes Semi-Monthly STRC Dividends to Boost Liquidity

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.

Strategy, the world’s largest corporate holder of bitcoin, has built its treasury through sales of common and preferred shares, making its capital allocation closely watched by equity and crypto investors. On June 29, the company adopted a Digital Credit Capital Framework that created a US dollar reserve and authorized repurchases. STRC is its variable-rate perpetual preferred stock. Funding a STRC buyback while issuing MSTR common shares highlights the trade-off between dilution, preferred-dividend support and preserving long-term bitcoin exposure.

In a July 27 filing with the US Securities and Exchange Commission, Strategy said it sold 5,429,160 MSTR shares through its at-the-market program from July 20 through July 26, generating $544.5 million in net proceeds. It repurchased 288,930 STRC shares for $25 million, its first activity under the $1 billion preferred-securities buyback authorization. Bitcoin holdings stayed unchanged at 843,775, while the dollar reserve rose by $525 million to $3.75 billion, enough for about 2.1 years of dividends. A day earlier, Executive Chairman Michael Saylor posted, “We’re gonna need another color,” fueling speculation about Strategy’s next move.

As the publicly listed company with the world’s largest Bitcoin holdings, Strategy’s moves are closely watched across the crypto market. The company has primarily used debt and new share issuance to aggressively accumulate Bitcoin. Its holdings strategy and financing methods have long served as an important gauge of institutional attitudes toward crypto assets, and any shift in how it uses funds could prompt investors to reassess its financial resilience and market outlook.

Strategy sold about $467 million of MSTR shares through an at-the-market program during the week, boosting its cash reserves to $3 billion. The funds will primarily cover preferred-stock dividends and interest. Unlike the previous week, when it sold Bitcoin to raise capital, the latest move allowed the company to keep its Bitcoin position unchanged at 843,775 BTC, demonstrating its ability to raise U.S. dollar liquidity without reducing its core crypto holdings.

Strategy launched STRC, a floating-rate perpetual preferred stock, in July 2025 with a par value of $100 to raise funds for expanding its Bitcoin holdings. Its dividend rate is adjusted monthly to keep the market price close to par. Although STRC ranks ahead of common stock for repayment, it remains exposed to risks tied to Strategy’s Bitcoin holdings, financing and dividend coverage. Its sharp discount to par is now testing its positioning as a stable income investment.

STRC closed at $91.79 on June 16, 2026, an 8.2% discount to its $100 par value and its third-lowest close since listing in July 2025, implying an annualized yield of 12.53%. Bitcoin was trading at about $65,000 at the time. After Strategy repaid $1.5 billion of convertible debt, its cash dividend coverage fell from 24 months to seven months. The same day, Strive’s SATA began paying daily dividends at a 13% annual rate while trading at $99.99, further drawing income-focused capital away from STRC.

Strategy, formerly known as MicroStrategy and traded under the ticker MSTR, holds Bitcoin on its balance sheet and also raises capital through its perpetual preferred stock, Stretch (STRC). STRC is positioned as a high-yield savings alternative, offering monthly cash dividends to income-focused investors. Its dividend rate can be adjusted to stabilize its price and reduce the impact of market volatility.

Strategy said STRC’s annualized dividend rate would remain at 11.5% in May, marking the third consecutive month at that level. Eligible shareholders will receive monthly cash dividends based on their holdings. Meanwhile, STRC posted its first monthly share-price gain in nine months, suggesting that the high-yield policy has recently begun to support its price.

Strategy (MSTR) uses its perpetual preferred stock, Stretch (STRC), as a long-term financing vehicle, attracting capital through a relatively stable share price and dividend mechanism before deploying the proceeds into Bitcoin. The model can reduce the dilution pressure associated with frequent common-stock issuance while giving investors a gauge of whether the company can continue expanding its crypto holdings.

STRC recorded $333 million in trading value on Wednesday, its seventh-highest single-day volume since issuance, while moving by just $0.01 intraday, indicating stability despite heavy trading. Based on the amount raised that day, Strategy may have used the proceeds to buy more than 2,000 additional Bitcoin.

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 MicroStrategy (Nasdaq: MSTR), has continued to expand its Bitcoin holdings through equity issuance and debt since adding the cryptocurrency to its corporate treasury in 2020. At-the-market, or ATM, programs allow shares to be sold in tranches as market conditions permit. The new capacity could support further purchases but also brings common-stock dilution and preferred-share dividend obligations.

On March 23, 2026, Strategy filed for separate ATM programs covering $21 billion of MSTR common stock and $21 billion of STRC preferred stock, for a combined $42 billion. Including its STRK capacity, the total reaches $44.1 billion. The company also disclosed that it spent $76.6 million to buy 1,031 Bitcoin from March 16 to 22, increasing its holdings to 762,099 Bitcoin.

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.