Strategy raises STRC preferred shares dividend yield to 11.5% amid crypto market volatility

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Strategy raises STRC

Highlights

Strategy raises STRC preferred dividend yield to 11.50%.
Dividend hike aims to stabilize shares amid crypto market volatility.
Company shifts focus from common equity to preferred capital.

Chairman Michael Saylor announced the adjustment on social media, and the company later confirmed the update on its official website. STRC are perpetual preferred shares with a variable yield that is revised monthly.

According to the company, the rate is adjusted to maintain the share price near the $100 par value and reduce volatility. Dividends are paid monthly, with the next payment scheduled for March 31 for registered shareholders.

Shift to preferred capital

In February, CEO Fang Lee stated that the company is gradually moving away from issuing common shares to fund Bitcoin purchases, focusing instead on preferred instruments.

Last year, Strategy’s perpetual preferred shares raised $7 billion—about 33% of the entire preferred shares market. In 2026, the company expects further growth in structured investments and plans to shift its focus from common equity to preferred capital.

Despite the crypto market downturn, Strategy continues to increase its BTC holdings. Bitcoin has lost 23.2% since the beginning of the year, while stocks of companies with high crypto exposure have also been under pressure. The Bitwise Bitcoin Standard Corporations ETF (OWNB), which tracks public companies with large Bitcoin reserves, has declined 16.1%.

Financial results and stock performance

In early February, Strategy reported a net loss of $12.4 billion for Q4 2025. Following the report, the company’s shares dropped 13% to around $107. Quarterly revenue increased 1.9% year-over-year to approximately $123 million.

Strategy’s common shares (MSTR) reached an intraday high of $543 in November 2024, but fell below $300 by February 2025. Since the November peak, the stock has lost roughly 75%, closing Friday at $129.50.

The company’s average Bitcoin purchase price is $76,020, significantly above current market levels. The latest purchase was during the week of February 16, when Strategy acquired 592 BTC for $39.8 million, bringing total holdings to 717,722 BTC. This was the company’s 100th Bitcoin purchase in its history.

What the dividend increase means

Raising STRC yields during a market downturn signals Strategy’s commitment to maintaining investor interest amid high volatility. A higher rate makes the instrument more attractive compared to traditional preferred shares and corporate bonds, particularly for income-focused investors.

The shift to preferred capital reduces dilution of common shareholders and supports BTC accumulation without additional pressure on MSTR’s share price. However, this model increases Strategy’s reliance on its ability to meet dividend obligations in a volatile Bitcoin market, making BTC performance a key factor for the stability of the company’s capital structure.

As we wrote, What triggered Strategy latest price pullback

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