Quick Summary
- Strategy increased its STRC preferred stock dividend by 25 basis points to 11.50% for March 2026 — marking the seventh boost since STRC’s debut in July 2025.
- MSTR shares dropped 14% during February, extending its losing streak to eight consecutive months.
- STRC is structured to maintain trading close to its $100 par value; shares closed at $100 on Friday.
- The company disclosed a $12.4 billion net loss for Q4 2025; MSTR has plunged approximately 75% from its November 2024 high of $543.
- CEO Phong Le indicated Strategy will transition from common stock issuance to preferred stock offerings for financing Bitcoin acquisitions.
Strategy continues to sweeten the deal for its STRC preferred shareholders. Michael Saylor revealed on Sunday that the annual dividend rate will climb to 11.50% for March 2026, up from the previous 11.25% rate.
This marks the seventh time the dividend has been raised since STRC — affectionately called “Stretch” — launched last July. Shares finished Friday’s session precisely at their $100 par value, demonstrating the mechanism is working as intended.
STRC operates as a perpetual preferred security featuring a variable monthly yield. Each month, Strategy recalibrates the dividend payment with the objective of maintaining the share price near $100 and minimizing price swings. The stock temporarily fell below par during February’s market volatility before bouncing back.
Strategy positions this instrument as a short-duration, high-yield savings alternative. The upcoming dividend distribution is set for March 31.
While STRC has demonstrated resilience, MSTR common stock tells a different story. Strategy’s primary shares declined 14% throughout February, extending an eight-month losing streak.
Bitcoin plummeted nearly 20% in February. MSTR typically correlates with Bitcoin’s movements — and that relationship has been painful recently.
MSTR momentarily touched $543 per share back in November 2024. Friday’s closing price was $129.50. That represents approximately a 75% collapse from the peak.
Shifting Focus to Preferred Securities
CEO Phong Le recently articulated Strategy’s evolving capital strategy. The firm is scaling back common stock issuance while ramping up preferred stock offerings to finance its Bitcoin buying program.
“As we go throughout the course of this year, we expect structure to be a big product for us,” Le explained. “We will start to transition from equity capital to preferred capital.”
During the previous year, STRC alongside other perpetual preferred instruments generated $7 billion in capital — representing roughly 33% of the total preferred stock market, Le noted.
Massive Quarterly Losses and Bitcoin Pricing Pressure
Strategy disclosed a staggering $12.4 billion net loss for the fourth quarter of 2025 in early February. While revenue climbed 1.9% year-over-year to approximately $123 million, investors weren’t impressed — the stock plunged 13% in a single trading session following the announcement.
Bitcoin currently trades significantly beneath Strategy’s average acquisition cost of $76,020 per BTC. At the time of publication, Bitcoin hovered around $66,000 — creating a substantial valuation gap.
For the year-to-date period, BTC has declined 23.2%. The Bitwise Bitcoin Standard Corporations ETF (OWNB), which monitors companies with substantial Bitcoin reserves, has fallen 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.
