Strategy Inc. Elevates STRC Preferred Stock Dividend Rate to 10%

Tysons Corner, Virginia – Strategy Inc. has announced an increase in the annual dividend rate for its Variable Rate Series A Perpetual Stretch Preferred Stock (NASDAQ: STRC) from 9% to 10%. This adjustment, effective for monthly periods commencing September 1, 2025, was disclosed in an SEC filing on August 31, 2025, and subsequently highlighted by financial news outlets. The move reflects the company's ongoing management of its preferred stock offerings.

The dividend rate increase for STRC is part of Strategy Inc.'s established Dividend Adjustment Framework. This framework aims to maintain the trading price of STRC close to its $100 stated amount by adjusting the dividend rate based on the stock's five-day volume-weighted average price (VWAP). For instance, management will recommend a 25 basis-point increase if the VWAP falls between $95.00 and $98.99.

Strategy Inc., formerly known as MicroStrategy, has pivoted its business model to focus primarily on its Bitcoin treasury strategy. The STRC preferred stock, which launched with an initial public offering of approximately $2.5 billion in July 2025, represents a significant capital-raising instrument for the company. This IPO was noted as the largest U.S. IPO completed in 2025 to date based on gross proceeds.

The company's financial performance in the second quarter of 2025, including $14 billion in operating income and $10 billion in net income, supports its capacity for such dividend adjustments. Strategy Inc. held 597,325 bitcoin as of June 30, 2025, and its adoption of new fair-value accounting standards in January 2025 has allowed it to recognize unrealized gains on its digital asset holdings. This financial stability contributes to its ability to enhance shareholder value through its preferred stock offerings.

The decision to raise the STRC dividend underscores Strategy Inc.'s commitment to its yield-seeking investors and its strategic financial management. As tweeted by Cointelegraph, "🔥 JUST IN: Strategy raises annual dividend rate on preferred stock $STRC from 9% to 10%." This adjustment is subject to Board approval, with dividends declared only if deemed in the company’s best interests, as outlined in its regulatory filings.