In a bold move to bolster investor confidence, MicroStrategy has announced a hike in the dividend yield on its STRC preferred stock to 11.50% for March 2026, up from the previous 11.25%, according to a social media post by company chairman Michael Saylor on Sunday.
STRC, also known as “Stretch,” is a perpetual preferred stock, meaning the company has no obligation to repurchase it at any specific date. The stock features a variable yield that adjusts monthly, designed to maintain trading around its $100 par value and reduce price volatility. The next dividend payout is scheduled for March 31, to shareholders of record.
Pivot to Preferred Shares
In a strategic shift, MicroStrategy CEO Phong Le revealed in February that the company is moving away from issuing common stock to fund its Bitcoin (BTC) purchases and is instead focusing on issuing more preferred shares. “Last year, our Stretch and perpetual preferreds raised $7 billion, which is 33% of the entire preferred market,” Le stated. “As we go throughout this year, we expect STRC to be a significant product for us. We will start to transition from equity capital to preferred capital.”
Market Context and Challenges
This strategic move comes amid a challenging market environment for digital asset treasury companies. Bitcoin has lost 23.2% of its value year-to-date, and the share price of the Bitwise Bitcoin Standard Corporations ETF (OWNB), which provides exposure to public companies holding significant amounts of Bitcoin, is down 16.1%.
MicroStrategy itself has faced significant headwinds, reporting a net loss of $12.4 billion in the fourth quarter of 2025, which led to a 13% drop in its share price to about $107 per share. Despite a 1.9% year-over-year increase in revenue to about $123 million for the quarter, the company’s stock has been in a downward spiral, falling by about 75% since its peak of $543 per share in November 2024.
Bitcoin Holdings and Future Outlook
MicroStrategy continues to accumulate Bitcoin, even as the market draws down. The company’s latest purchase, made during the week of February 16, added 592 BTC valued at over $39.8 million, bringing its total holdings to 717,722 BTC. This marks the company’s 100th BTC acquisition, underscoring its commitment to the cryptocurrency.
However, the current price of Bitcoin is well below MicroStrategy’s average purchase cost of $76,020 per BTC. Despite this, the company remains optimistic about the long-term potential of Bitcoin and its strategic position as a leader in the digital asset space.
“The shift to preferred shares is a strategic move to align with market conditions and provide more stability to our investors,” Le noted. “We believe that by leveraging preferred capital, we can better manage our financial structure and continue to execute on our vision for Bitcoin.”
Conclusion
MicroStrategy’s decision to increase the STRC preferred dividend and pivot towards preferred shares reflects a proactive approach to navigating the volatile cryptocurrency market. While the company faces significant challenges, its continued commitment to Bitcoin and innovative financial strategies suggest that it is positioning itself for long-term success in the digital asset space. As the market evolves, investors will be watching closely to see how these moves impact MicroStrategy’s financial health and overall strategy.
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