Strategy Inc, the world's largest corporate Bitcoin holder, has announced a 25 basis point increase in the dividend rate for its perpetual preferred stock, STRC (Stretch), to 11.50% for March 2026. This marks the seventh consecutive hike since the stock's IPO in July 2025, up from February's 11.25% rate.
The increase, revealed by Executive Chairman Michael Saylor on X (formerly Twitter), aims to maintain STRC's trading price near its $100 par value, providing investors with a stable, high-yield alternative amid market volatility. STRC, listed on Nasdaq, offers monthly cash dividends and serves as a funding mechanism for Strategy's Bitcoin acquisitions without diluting common shares.
Despite broader cryptocurrency market headwinds, with Bitcoin down roughly 24% year-to-date, STRC has maintained strong demand as a preferred capital instrument. CEO Phong Le previously indicated a shift toward preferred stock issuance to fuel Bitcoin purchases. In a February 2026 Bloomberg interview, Le stated the company would transition from equity capital (common stock) to preferred capital to reduce volatility and continue BTC acquisitions, easing investor concerns over common share swings.
With a market cap of $3.46 billion and over 34 million shares outstanding, STRC's effective yield remains attractive for income-focused investors. As crypto markets recover, STRC could provide a steady income stream while supporting Strategy's aggressive Bitcoin treasury strategy.