Strategy Holds Dividend Rate Steady as Bitcoin Volatility Strains Capital Structure
Strategy raises funds to buy Bitcoin by issuing STRC preferred stock and adjusts its dividend rate monthly in an effort to keep the shares close to their $100 par value. As MSTR common stock tumbles, the leveraged capital structure underpinning its Bitcoin holdings through equity financing is coming under greater pressure. Its ability to meet obligations and maintain market confidence is also becoming more dependent on Bitcoin's price.
Strategy most recently kept STRC's annualized dividend rate at 11.50%. With its market price well below the $100-per-share par value, however, the market expects the next reset could lift the rate above 12%. Investors are now focused on the June 30 ex-dividend date and that month's dividend-rate adjustment. If Bitcoin and MSTR fail to stabilize, a higher dividend could further increase the company's funding costs.
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The history behind this eventStrategy Raises STRC Preferred Dividend to 11.5% as MSTR Falls With Bitcoin for Eighth Straight Month
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.
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