Strategy raises preferred stock dividend to 11.5% again, Bitcoin holdings surpass 710,000 coins but still face cost pressures

On March 2, Bitcoin’s largest corporate holder, Strategy, announced another increase in the dividend yield of its preferred stock, STRC. Founder Michael Saylor stated on Sunday that starting from March 2026, the annualized dividend rate for STRC will be raised from 11.25% to 11.50%. This marks the seventh dividend increase since the product was launched in July 2025, demonstrating the company’s strategy to attract capital through high-yield structured products.

STRC, known as “Stretch,” is a perpetual preferred stock with a dynamically adjusted monthly dividend rate. The company adjusts the yield each month based on market conditions, aiming to keep the stock price near its $100 par value. During market volatility in February, the price of STRC briefly fell below par but gradually recovered. Currently, the company positions this product as a short-term, high-yield savings asset, with the next dividend payout scheduled for March 31, 2026.

Unlike the relatively stable performance of preferred stocks, Strategy’s common stock, MSTR, has recently come under significant pressure. Data shows that MSTR declined about 14% in February, marking the eighth consecutive month of decline. Previously, the stock briefly reached a high of $543 in November 2024, but as of last Friday’s close, it was only $129.50, about a 75% retreat from its all-time peak.

CEO Phong Le recently revealed that Strategy is adjusting its financing structure. Moving forward, the company plans to reduce the proportion of common equity financing and instead raise funds through issuing preferred stocks to continue expanding its Bitcoin reserves. Le stated that in 2025, the company raised approximately $7 billion through STRC and other perpetual preferred stocks, accounting for about one-third of the entire preferred stock market.

Financial data shows that Strategy recorded a net loss of $12.4 billion in Q4 2025. Despite a 1.9% year-over-year increase in revenue to approximately $123 million, the company’s stock price fell 13% in a single day after the earnings report. Meanwhile, Bitcoin prices remain below the company’s average purchase cost. Strategy’s average buy-in price is $76,020, while the current market price is around $66,000.

Despite the unrealized losses, the company continues to increase its Bitcoin holdings. During the week of February 16, Strategy spent about $39.8 million to purchase 592 BTC, bringing its total holdings to 717,722 BTC and completing its 100th Bitcoin acquisition. Analysts believe that as the company’s Bitcoin reserves continue to grow, Strategy’s capital structure adjustments and financing strategies will remain key market indicators.