Key Takeaways
- Strategy has boosted the STRC preferred stock dividend rate by 25 basis points to 11.50% for March 2026 — marking the seventh rate increase since the instrument’s debut in July 2025.
- MSTR shares declined 14% during February, extending a losing streak to eight consecutive months.
- STRC maintains its design objective to trade near the $100 par value; Friday’s closing price hit exactly $100.
- The company posted 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 equity to finance Bitcoin acquisitions.
Strategy continues to adjust its STRC preferred stock dividend upward. Michael Saylor revealed on Sunday that the annual dividend rate will increase to 11.50% for March 2026, rising from the previous 11.25% rate.
This marks the seventh time the dividend has been raised since STRC — colloquially known as “Stretch” — launched in July 2025. The preferred stock finished Friday’s trading session precisely at its $100 par value, functioning as designed.
STRC operates as a perpetual preferred instrument featuring a variable monthly yield. Each month, Strategy recalibrates the dividend rate with the objective of maintaining the share price near $100 and minimizing price fluctuations. The stock temporarily fell below par during February’s market volatility before bouncing back.
Strategy characterizes the offering as functioning like a short-duration, high-yield savings vehicle. The upcoming dividend distribution is set for March 31.
While STRC performance has remained stable, MSTR common stock tells a different story. Strategy’s ordinary shares dropped 14% throughout February, marking the eighth consecutive month of losses.
Bitcoin experienced a nearly 20% decline in February. MSTR typically moves in tandem with Bitcoin — and currently that correlation is working against shareholders.
MSTR momentarily reached $543 per share in November 2024. Friday’s close registered at $129.50. That represents an approximately 75% decline from its all-time high.
Shifting Capital Strategy Toward Preferred Instruments
CEO Phong Le recently articulated Strategy’s evolving capital approach. The firm is reducing common stock issuance while increasing reliance on preferred stock offerings to finance Bitcoin purchases.
“As we progress through this year, we anticipate structure will represent a significant product for us,” Le explained. “We will begin transitioning from equity capital to preferred capital.”
During the previous year, STRC along with additional perpetual preferred instruments generated $7 billion — representing approximately 33% of the total preferred stock market, based on Le’s statements.
Substantial Losses and Underwater Bitcoin Position
Strategy disclosed a net loss totaling $12.4 billion for Q4 2025, announced in early February. While revenue increased 1.9% year-over-year to approximately $123 million, the earnings release triggered a 13% single-day stock decline.
Bitcoin currently trades significantly below Strategy’s average acquisition cost of $76,020 per BTC. At the time of writing, Bitcoin hovered around $66,000 — creating a substantial unrealized loss position.
For the year-to-date period, BTC has fallen 23.2%. The Bitwise Bitcoin Standard Corporations ETF (OWNB), which monitors companies with substantial Bitcoin holdings, has decreased 16.1% during the same 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 purchase.
