Strategy Raises STRC Preferred Dividend to 11.5% as MSTR Falls With Bitcoin for Eighth Straight Month

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 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 MicroStrategy, has raised funds by issuing perpetual preferred stock STRC to expand its bitcoin holdings, closely linking the company's securities, leveraged financing and the crypto market. After STRC fell below its $100-per-share benchmark, investors grew concerned that its fundraising capacity and dividend commitments could come under pressure. The preferred stock's price swings have therefore become a key gauge of confidence in Strategy's creditworthiness and bitcoin strategy.

On June 18, STRC fell to its lowest level since issuance, subjecting highly leveraged investors to margin calls and forced liquidations. Strive's CEO stressed that the sharp declines in STRC and SATA stemmed from leveraged liquidations rather than deteriorating credit. The selling subsequently spread to the cryptocurrency market, briefly driving bitcoin down to about $62,000, while DeFi and smart-contract tokens also led losses.

Strategy, formerly MicroStrategy, has raised funds since 2020 by issuing MSTR common stock, convertible bonds and preferred shares such as STRC to buy Bitcoin. This created a cycle in which rising Bitcoin prices enabled further capital raising and additional purchases. STRC has a $100 reference price and pays cash dividends. When Bitcoin, MSTR and STRC all decline, the company's financing capacity deteriorates as dividend pressure and shareholder dilution risks increase.

Strategy's U.S. dollar reserves fell from $2.25 billion in February to $871 million in May, while STRC dropped to $71.25 on June 26. The company raised STRC's annualized dividend rate for July from 11.5% to 12%, bringing annual dividend payments to about $1.025 billion. It also sold 3,588 Bitcoin from June 29 to July 5, raising about $216 million to replenish its cash reserves.

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, formerly known as MicroStrategy, has long financed Bitcoin purchases through debt and equity offerings, making MSTR a highly leveraged U.S.-listed proxy for cryptocurrency prices. Bitcoin’s swings affect the value of its holdings, its financing capacity and its share price. Investors are therefore watching for signs of a technical reversal despite the company’s reported loss.

Strategy posted a net loss of $12.54 billion in the first quarter of 2026, but Bitcoin’s recent recovery has prompted the market to reassess MSTR. Technical analysis indicates that the shares are forming an ascending triangle. A confirmed breakout above resistance could send the stock toward $350, implying about 80% upside, with the rally potentially lasting several months.

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, formerly known as MicroStrategy, raises funds through debt, common-share issuance and preferred stock to buy bitcoin, making BTC its core treasury asset. Michael Saylor argues that as long as bitcoin’s long-term annualized return exceeds the 2.05% cost of its preferred stock, the company can continue paying dividends without issuing additional common shares and diluting shareholders.

According to its latest disclosure, Strategy holds more than 760,000 bitcoin and remains the world’s largest publicly traded corporate holder of the cryptocurrency. Saylor recently hinted again at further purchases. At its current pace of accumulation, the company is buying close to three times the amount of new bitcoin supply created over the same period, indicating that it continues to use low-cost preferred stock to expand its BTC position.

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, has long raised funds through stock and debt offerings to buy Bitcoin, becoming one of the world's largest corporate holders of the cryptocurrency. In July 2025, it launched its “Stretch” perpetual preferred stock (STRC), designed to offer low volatility and a high yield. The product gives investors who are bullish on Bitcoin but unwilling to bear its sharp price swings a way to participate in the company's Bitcoin strategy.

Strategy Executive Chairman Michael Saylor most recently said retail investors account for about 80% of STRC holders, showing that the product has primarily attracted ordinary individual investors. Since launching STRC in 2025, the company has used proceeds from the offering to purchase more than $1 billion worth of Bitcoin, using the preferred stock's dividend and price-stability mechanisms to expand capital-markets demand for Bitcoin.