Strategy Inc. announced that the dividend rate on its 10% Series A Perpetual Stretch Preferred Stock (STRC) will increase to 10.5 % effective November 1, 2025, up from the 10.25 % rate that had been in place since October 1. The change reflects the company’s variable‑rate framework, which adjusts the dividend monthly based on the five‑day volume‑weighted average price (VWAP) to keep the preferred shares trading near their $100 par value.
Prior to the November increase, STRC’s dividend rate had risen in a series of steps: 9 % in August, 10 % on September 2, and 10.25 % effective October 1. The November adjustment is the latest in a pattern of incremental hikes that have kept the preferred stock attractive to investors while allowing Strategy to fund its Bitcoin acquisition program. The variable‑rate mechanism ensures that the dividend remains aligned with market conditions, preventing the preferred shares from becoming over‑ or under‑priced relative to their par value.
The higher dividend rate raises Strategy’s recurring cash outlay, but the company’s Bitcoin‑backed balance sheet remains robust. With approximately 649,870 BTC on hand—valued at roughly $61.7 billion as of November 2025—the dividend obligation represents only a small fraction of total assets. Even if Bitcoin’s price were to fall to $25,000, the company would still maintain a debt‑coverage ratio of at least 2×, underscoring the resilience of its collateral base.
Strategically, the dividend increase signals Strategy’s intent to maintain a strong capital‑raising platform while managing the cost of capital in a volatile market. By keeping the preferred stock attractive, the company can continue to issue STRC to finance additional Bitcoin purchases and other strategic initiatives without diluting its core software business. The move also demonstrates confidence in the long‑term value of Bitcoin as a treasury asset and the company’s ability to balance growth with financial prudence.
In a statement, President and CEO Phong Le emphasized that the dividend adjustment is part of Strategy’s broader commitment to “strengthen our position as the world’s leading Bitcoin treasury company.” He added that the company’s Bitcoin holdings have grown to 640,808 BTC and that the preferred‑stock platform remains a key tool for supporting the firm’s acquisition strategy and shareholder returns.
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