MicroStrategy Increases STRC Dividend to 11.50% Amid Bitcoin Struggles

Mar 3, 2026, 2:46 AM
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MicroStrategy, now branded as Strategy, has raised its STRC preferred stock dividend to 11.50% for March 2026, marking a 25 basis point increase from the previous month. This decision comes amidst ongoing pressures on Bitcoin, which has seen a significant drawdown, affecting both the company’s Class A shares (MSTR) and its overall financial health.
The largest corporate holder of Bitcoin, MicroStrategy has observed a 14.77% decline in its MSTR shares year-to-date, coinciding with Bitcoin's nearly 24% drop in the same period. This decline highlights the volatility of the cryptocurrency market and its direct impact on corporate valuations linked to Bitcoin investments.
The increase in the STRC dividend is a strategic move designed to maintain the stock's trading price close to its $100 par value, thereby limiting price volatility. Executive Chairman Michael Saylor announced this new rate on X (formerly Twitter), emphasizing that this is the seventh increase since STRC shares began trading in July 2025.
MicroStrategy's CEO, Phong Le, had previously mentioned a planned shift towards issuing preferred shares rather than common stock for future Bitcoin purchases, aiming to mitigate the risks associated with MSTR equity dilution. The company continues to acquire Bitcoin despite reporting $6.6 billion in paper losses, reflecting a commitment to its long-term strategy.
As of the latest reports, MSTR is trading down approximately 10.8% at $158.95, having reached an 18-month low earlier in the day. This stock performance follows a trend where MicroStrategy has closed lower in 11 out of its last 15 trading sessions, indicating a substantial downturn for the company in 2025, with a 45% loss year-to-date.
Despite the challenges, analysts remain cautiously optimistic about MicroStrategy's future. Of the 15 brokerages covering the stock, 13 maintain "buy" or better ratings, with no "sell" recommendations. The consensus price target of $529.18 suggests a potential 232% upside from its current trading level, indicating that many in the investment community still see value in the company’s long-term Bitcoin strategy.
In conclusion, MicroStrategy's adjustment of its STRC dividend amidst a challenging Bitcoin market reflects its ongoing commitment to maintaining shareholder value while navigating significant volatility in the cryptocurrency space. The future will likely depend on Bitcoin's recovery and the effectiveness of MicroStrategy's preferred share strategy in sustaining its financial health.

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