TLDR
- Strategy announced a 25 basis point increase to the STRC preferred stock dividend, bringing it to 11.50% for March 2026 — the seventh rise since the instrument debuted in July 2025.
- MSTR experienced a 14% decline in February, extending its losing streak to eight months.
- STRC maintains a design focused on trading near its $100 par value; Friday’s closing price hit exactly $100.
- Strategy disclosed a $12.4 billion net loss for Q4 2025; MSTR has declined approximately 75% from its November 2024 high of $543.
- CEO Phong Le announced Strategy’s intention to transition from common stock issuance to preferred stock issuance for financing Bitcoin acquisitions.
Strategy has announced another increase to its STRC preferred stock dividend. Michael Saylor revealed Sunday that the annual rate will rise to 11.50% for March 2026, climbing from 11.25%.
This marks the seventh dividend increase since STRC — affectionately known as “Stretch” — launched in July 2025. Friday’s closing price landed precisely at the $100 par value, demonstrating the mechanism’s effectiveness.
STRC operates as a perpetual preferred stock offering a variable monthly yield. Strategy makes monthly dividend adjustments designed to maintain the price near $100 and minimize volatility. The price fell below par during February’s market turbulence before bouncing back.
The company positions the instrument as a short-duration, high-yield savings alternative. The upcoming dividend payment is scheduled for March 31.
While STRC has demonstrated stability, MSTR tells a different story. Strategy’s common stock declined 14% throughout February, concluding its eighth consecutive month of losses.
Bitcoin plummeted nearly 20% during February. MSTR typically tracks these movements — and the current trajectory reflects that correlation.
MSTR touched $543 per share in November 2024. Friday’s close came in at $129.50. This represents approximately a 75% decline from the peak.
Strategy’s Pivot to Preferred Capital
CEO Phong Le recently outlined Strategy’s strategic direction. The company plans to reduce common stock issuance while expanding preferred stock offerings to finance Bitcoin purchases.
“As we go throughout the course of this year, we expect structure to be a big product for us,” Le said. “We will start to transition from equity capital to preferred capital.”
During the previous year, STRC and other perpetual preferred offerings generated $7 billion — representing approximately 33% of the total preferred market, according to Le’s statements.
Heavy Losses and a Bitcoin Price Gap
Strategy announced a net loss of $12.4 billion for Q4 2025 in early February. Revenue increased 1.9% year-over-year to approximately $123 million, yet the earnings report triggered a 13% single-day decline in the stock.
Bitcoin currently trades significantly below Strategy’s average acquisition cost of $76,020 per BTC. Bitcoin hovered around $66,000 at the time of writing — creating a substantial gap.
Year-to-date, BTC has fallen 23.2%. The Bitwise Bitcoin Standard Corporations ETF (OWNB), which monitors companies with substantial Bitcoin holdings, has declined 16.1% during the same timeframe.
Strategy’s most recent Bitcoin purchase occurred during the week of February 16, when the company acquired 592 BTC for more than $39.8 million. This transaction increased total holdings to 717,722 BTC and represented the company’s 100th Bitcoin acquisition.
