Strategy raises the Stretch Dividend Rate (STRC) to 11.50% for March 2026, up from 11.25%, a move confirmed in a Friday update and echoed by a Sunday X post from Strategy chairman Michael Saylor, highlighting the ongoing rate-reset mechanism.

The 11.50% rate reflects a 25 basis point January-to-March increase, continuing a monthly hike sequence that began at 9.00% in July 2025.

Bitcoin’s market price remains well below Strategy’s average cost basis of about $76,020 per BTC, contributing to pressure on Strategy’s stock as the year begins.

Year-to-date, Bitcoin and Strategy stock prices have declined, with BTC down around the mid-teens and Strategy trading near $129.50 after a sharp retreat from late 2024 peaks.

Market context notes STRC yield wrapping expanding into Europe via a STRC-linked exchange-traded product and ongoing coverage of Strategy’s financial performance and BTC accumulation.

Strategy continues accumulating Bitcoin amid a broader market downturn, adding 592 BTC in the week of February 16 for a total of 717,722 BTC, marking its 100th Bitcoin acquisition.

Investors in STRC face corporate credit risk because the preferred shares are not backed by Strategy’s Bitcoin holdings and depend on Strategy’s balance sheet and broader Bitcoin conditions.

Strategy has financed Bitcoin purchases through a mix of equity, convertible notes, and preferred stock, with STRC adding a monthly income layer to support further acquisitions.

As of early February 2026, STRC’s aggregate stated value stood around $3.4 billion, with Strategy facing about $800 million in annual dividend obligations and maintaining a cash buffer near $1.44 billion to cover roughly two years of current dividends.

STRC’s dividend structure is tied to Strategy’s ATM program: when STRC trades at or above $100, new shares can fund BTC purchases, while trading below par can slow or halt issuances.

Strategy has raised roughly $7 billion through Stretch and other perpetual preferreds, representing about one-third of the entire preferred market, with plans to expand this funding channel further this year.

Strategy plans to pivot from issuing common stock to fund Bitcoin purchases toward issuing more preferred shares, as stated by CEO Phong Le.