Strategy’s STRC Preferred Stock: 11.5% Dividend Backed by Bitcoin Holdings

Strategy (NASDAQ: MSTR), the world’s largest corporate owner of Bitcoin, maintains its perpetual preferred stock Stretch (STRC) at an 11.5% annual dividend rate, payable monthly in cash. This decision marks the first time the company has not increased the dividend since STRC’s launch in July 2025, reflecting a strategic pause amid evolving market conditions for Bitcoin and preferred equity instruments.

Understanding STRC: A Bitcoin-Backed Preferred Instrument

STRC is designed as a short-duration, high-yield alternative to traditional savings vehicles. The perpetual preferred stock pays monthly cash distributions, with its dividend rate adjusted each month to support trading near the $100 par value and limit price volatility. As of April 2026, STRC’s dividend rate stands at 11.50% annualized, based on the $100 stated amount, with an effective yield that may vary with market conditions.

The instrument is explicitly backed by Strategy’s Bitcoin holdings. Capital raised from STRC issuances directly funds the company’s Bitcoin purchases, creating a unique linkage between the preferred stock’s yield and the underlying cryptocurrency asset. This structure allows Strategy to offer investors regular cash payouts while simultaneously accumulating Bitcoin on its balance sheet.

Recent Market Activity and Dividend Stability

In April 2026, Strategy reported its largest Bitcoin purchase in over 16 months, acquiring approximately 34,200 Bitcoin worth $2.54 billion. This transaction increased Strategy’s total Bitcoin holdings to around 815,000 BTC, valued at approximately $61.4 billion at current market prices. The purchase coincided with heightened trading activity in STRC, as investors sought to capture the upcoming dividend before the ex-dividend date.

STRc’s ex-dividend date for the April 2026 payment occurred on April 14, 2026, with the next payment scheduled for April 30, 2026. Leading up to this date, STRC traded at or above the $100 par value for 10 consecutive trading days, indicating sustained investor demand for the dividend capture opportunity. The stock currently trades near par at $100.02 per share.

Strategy has issued nearly $2.2 billion worth of STRC to date, with the instrument’s notional value reaching $8.5 billion as of April 2026. This substantial issuance demonstrates strong investor appetite for the Bitcoin-backed yield product, even as the company has paused its regular Bitcoin acquisition schedule after 13 consecutive weeks of buying.

Investor Considerations and Risk Factors

While STRC offers an attractive yield, investors should recognize key characteristics that distinguish it from conventional fixed-income securities. The dividend rate is variable and subject to monthly adjustment based on market conditions, meaning the current 11.50% rate is not guaranteed for future periods. STRC lacks the protections afforded to bank deposits, including FDIC insurance and equivalent regulatory oversight.

The instrument’s performance is intrinsically tied to Strategy’s Bitcoin holdings and overall financial health. As noted in the company’s disclosures, STRC is neither a bank deposit nor regulated in the same manner as money market funds or Treasury securities, which affects its risk profile relative to traditional yield alternatives.

Conclusion

Strategy’s decision to hold the STRC dividend rate at 11.5% represents a significant milestone in the evolution of its Bitcoin-backed preferred stock program. By maintaining this elevated yield while continuing to leverage STRC proceeds for Bitcoin accumulation, the company offers investors a distinctive instrument that bridges traditional income-seeking behavior with cryptocurrency exposure. As the cryptocurrency market continues to mature, instruments like STRC may play an increasingly important role in how corporations access capital and how investors gain exposure to digital assets through structured financial products.

For investors considering STRC, careful attention to the variable nature of the dividend, the instrument’s structural risks, and the underlying Bitcoin exposure is essential. The product’s success will depend on sustained demand for both its yield characteristics and the continued strength of Strategy’s Bitcoin treasury strategy.

Strategy’s STRC Preferred Stock: 11.5% Dividend Backed by Bitcoin Holdings

Strategy (NASDAQ: MSTR), the world’s largest corporate owner of Bitcoin, maintains its perpetual preferred stock Stretch (STRC) at an 11.5% annual dividend rate, payable monthly in cash. This decision marks the first time the company has not increased the dividend since STRC’s launch in July 2025, reflecting a strategic pause amid evolving market conditions for Bitcoin and preferred equity instruments.

Understanding STRC: A Bitcoin-Backed Preferred Instrument

STRC is designed as a short-duration, high-yield alternative to traditional savings vehicles. The perpetual preferred stock pays monthly cash distributions, with its dividend rate adjusted each month to support trading near the $100 par value and limit price volatility. As of April 2026, STRC’s dividend rate stands at 11.50% annualized, based on the $100 stated amount, with an effective yield that may vary with market conditions.

The instrument is explicitly backed by Strategy’s Bitcoin holdings. Capital raised from STRC issuances directly funds the company’s Bitcoin purchases, creating a unique linkage between the preferred stock’s yield and the underlying cryptocurrency asset. This structure allows Strategy to offer investors regular cash payouts while simultaneously accumulating Bitcoin on its balance sheet.

Recent Market Activity and Dividend Stability

In April 2026, Strategy reported its largest Bitcoin purchase in over 16 months, acquiring approximately 34,200 Bitcoin worth $2.54 billion. This transaction increased Strategy’s total Bitcoin holdings to around 815,000 BTC, valued at approximately $61.4 billion at current market prices. The purchase coincided with heightened trading activity in STRC, as investors sought to capture the upcoming dividend before the ex-dividend date.

STRc’s ex-dividend date for the April 2026 payment occurred on April 14, 2026, with the next payment scheduled for April 30, 2026. Leading up to this date, STRC traded at or above the $100 par value for 10 consecutive trading days, indicating sustained investor demand for the dividend capture opportunity. The stock currently trades near par at $100.02 per share.

Strategy has issued nearly $2.2 billion worth of STRC to date, with the instrument’s notional value reaching $8.5 billion as of April 2026. This substantial issuance demonstrates strong investor appetite for the Bitcoin-backed yield product, even as the company has paused its regular Bitcoin acquisition schedule after 13 consecutive weeks of buying.

Investor Considerations and Risk Factors

While STRC offers an attractive yield, investors should recognize key characteristics that distinguish it from conventional fixed-income securities. The dividend rate is variable and subject to monthly adjustment based on market conditions, meaning the current 11.50% rate is not guaranteed for future periods. STRC lacks the protections afforded to bank deposits, including FDIC insurance and equivalent regulatory oversight.

The instrument’s performance is intrinsically tied to Strategy’s Bitcoin holdings and overall financial health. As noted in the company’s disclosures, STRC is neither a bank deposit nor regulated in the same manner as money market funds or Treasury securities, which affects its risk profile relative to traditional yield alternatives.

Conclusion

Strategy’s decision to hold the STRC dividend rate at 11.5% represents a significant milestone in the evolution of its Bitcoin-backed preferred stock program. By maintaining this elevated yield while continuing to leverage STRC proceeds for Bitcoin accumulation, the company offers investors a distinctive instrument that bridges traditional income-seeking behavior with cryptocurrency exposure. As the cryptocurrency market continues to mature, instruments like STRC may play an increasingly important role in how corporations access capital and how investors gain exposure to digital assets through structured financial products.

For investors considering STRC, careful attention to the variable nature of the dividend, the instrument’s structural risks, and the underlying Bitcoin exposure is essential. The product’s success will depend on sustained demand for both its yield characteristics and the continued strength of Strategy’s Bitcoin treasury strategy.