Strategy increases STRC preferred stock dividend to 11.50% for March 2026, shifting funding focus towards preferred shares for Bitcoin acquisitions.
Dividend Increase for Strategy's Stretch Preferred Stock
Strategy chairman Michael Saylor announced an increase in the dividend rate of the company's STRC preferred stock, commonly known as "Stretch," to 11.50% for March 2026, up from the previous rate of 11.25%. This move follows a recent pivot by Strategy toward issuing more preferred shares to fund Bitcoin (BTC) purchases.
Strategic Shift in Funding
Strategy CEO Phong Le has indicated that the company is transitioning away from common stock issuances for funding its BTC acquisitions towards issuing more preferred shares. Last year, STRC and perpetual preferreds raised $7 billion, accounting for 33% of the entire preferred market. As Strategy moves forward into this year, the company expects structure to become a significant product focus.
Market Context and Performance
Despite these strategic shifts, Bitcoin's market environment remains challenging. Since October, the price of BTC has nearly halved, affecting digital asset treasury companies like Strategy. In the first quarter of 2026, BTC lost 23.2% of its value, while the share price of Bitwise Bitcoin Standard Corporations ETF (OWNB) dropped 16.1%. The broader context of market drawdown has also impacted Strategy's stock performance.
Financial Performance and Holdings
Strategy reported a net loss of $12.4 billion for the fourth quarter of 2025, causing its share price to drop by 13% to about $107 per share. Revenue increased by 1.9% year-over-year to approximately $123 million. The company's stock has fallen significantly over the past year, with a peak value of $543 per share in November 2024 and hitting $129.50 as of February 2026.
Recent Purchases and Holdings
Strategy's latest purchase occurred during the week of Feb. 16, when it acquired 592 BTC valued at over $39.8 million, bringing its total holdings to 717,722 BTC. This marks Strategy's 100th BTC acquisition. Despite these purchases, the price of BTC is trading below Strategy’s average purchase cost of $76,020 per Bitcoin.
Future Outlook
The strategic shift towards issuing more preferred shares and maintaining a significant BTC holding suggests that Strategy remains committed to its cryptocurrency investments despite market volatility. However, the company's financial performance and stock price continue to reflect the broader challenges in the digital asset market.
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