Key Highlights
- Strategy has increased the STRC preferred stock dividend to 11.50% for March 2026, marking a 25 basis point boost and the seventh adjustment since STRC’s debut in July 2025.
- MSTR experienced a 14% decline in February, extending its monthly losing streak to eight consecutive months.
- STRC maintains its structural design to hover around the $100 par value; Friday’s closing price hit exactly $100.
- The company disclosed a $12.4 billion net loss for Q4 2025; MSTR has plummeted approximately 75% from its November 2024 high of $543.
- CEO Phong Le announced Strategy’s strategic pivot toward issuing preferred stock rather than common stock to finance Bitcoin acquisitions.
Strategy has once more elevated the dividend rate for its STRC preferred stock offering. Michael Saylor revealed on Sunday that the annual dividend climbs to 11.50% for March 2026, representing an increase from the previous 11.25% rate.
Stretch Dividend Rate increased by 25 bps to 11.50% for March 2026. $STRC pic.twitter.com/G52tLsypsH
— Michael Saylor (@saylor) March 1, 2026
This marks the seventh time the dividend has been adjusted upward since STRC—affectionately dubbed “Stretch”—commenced trading in July 2025. Friday’s closing session saw the stock land precisely at its designated $100 par value, demonstrating the intended mechanism at work.
STRC functions as a perpetual preferred equity instrument featuring a variable monthly distribution. Strategy modifies the dividend payment monthly, aiming to anchor the trading price near $100 while minimizing price swings. The security temporarily dipped beneath par during February’s market volatility before bouncing back.
Strategy characterizes this instrument as a short-duration, high-yield investment vehicle similar to a savings account. The upcoming dividend distribution is slated for March 31.
Though STRC has demonstrated resilience, MSTR tells a different story. Strategy’s common shares declined 14% during February, marking the conclusion of an eighth consecutive month of losses.
Bitcoin experienced a nearly 20% decline in February. MSTR typically tracks Bitcoin’s movements—and current conditions haven’t been favorable.
MSTR touched $543 per share briefly in November 2024. Friday’s closing price stood at $129.50. This represents approximately a 75% decline from its peak valuation.
Strategy’s Strategic Shift Toward Preferred Securities
CEO Phong Le recently articulated Strategy’s evolving capital strategy with clarity. The organization is scaling back common stock issuance while amplifying its reliance on preferred stock to support Bitcoin purchasing activities.
“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 alongside other perpetual preferred instruments generated $7 billion in capital—representing roughly 33% of the total preferred stock market, based on Le’s statements.
Substantial Losses and Bitcoin Valuation Challenges
Strategy disclosed a net loss totaling $12.4 billion for the fourth quarter of 2025, announced during early February. Revenue increased 1.9% on a year-over-year basis to approximately $123 million, yet this failed to prevent a 13% single-day stock plunge following the earnings announcement.
Bitcoin currently trades significantly beneath Strategy’s average acquisition price of $76,020 per BTC. At the time of publication, Bitcoin hovered around $66,000—creating a substantial valuation gap that’s difficult to overlook.
Year-to-date performance shows BTC declining 23.2%. The Bitwise Bitcoin Standard Corporations ETF (OWNB), which monitors companies maintaining substantial Bitcoin reserves, has dropped 16.1% during the identical timeframe.
Strategy’s most recent Bitcoin acquisition occurred during the week of February 16, purchasing 592 BTC for more than $39.8 million. This transaction elevated total holdings to 717,722 BTC and represented the company’s 100th Bitcoin acquisition milestone.
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