Strategy Inc. (ticker: STRC), a subsidiary of MicroStrategy Incorporated, announced the annual dividend rate on its preferred stock has been raised to 10.25%.
The increase follows earlier reports the rate stood at 10% and rises to 10.25% starting with dividends for the period ending October 31.
Saylor posted on his X account: “Stretch your income. $STRC 🟧” referencing the preferred share.
Structure of the Offering
STRC is a perpetual preferred stock backed by large Bitcoin holdings held by Strategy and MicroStrategy. The company secured over-collateralization of the preferred via Bitcoin reserves, reinforcing investor backing. CoinDesk+1
The dividend rate is variable and paid monthly, rather than quarterly, with the goal of keeping the share price near its $100 face value. CoinDesk+1
Market and Investor Implications
The move signals that Strategy aims to attract yield-seeking investors by offering a relatively high dividend compared with traditional preferred stocks. The increased dividend rate may improve demand for STRC shares and reduce cost of capital for the company’s Bitcoin strategy. Bitget+1
However, analysts have noted risks: the dividend payments ultimately depend on the company’s ability to generate or raise cash, given that Bitcoin holdings themselves do not yield income.
Outlook and Context
With the dividend set at 10.25% annualized, Strategy positions STRC as one of the higher-yield corporate preferreds in the crypto and treasury space. Investors will monitor whether the company maintains the dividend and keeps share price near par value.
If Bitcoin prices decline or the market for the preferred weakens, risks increase. The offering reflects a broader trend of Bitcoin-treasury companies offering preferred stock to finance further crypto accumulation. Barron’s
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