Strategy raises STRC dividend as the preferred stock's price drifts below par

Core Insights - Strategy (MSTR) has increased the dividend rate on its preferred stock, Stretch (STRC), by 25 basis points to 11.25% for February, marking the sixth increase since its trading began in July 2025 [1] Group 1: Dividend and Stock Information - STRC is characterized as a perpetual preferred stock that offers monthly cash distributions, with the dividend rate adjusted monthly to maintain trading near its $100 par value and to mitigate price volatility [2] - The current trading price of STRC is $98.99, slightly below its par value [2] - Strategy has accumulated $2.25 billion in reserves to meet its dividend obligations on perpetual preferred offerings, which amount to approximately $887 million annually [2] Group 2: Bitcoin Market Context - The announcement regarding the dividend increase follows a period where bitcoin's price fell below $76,000, which temporarily affected Strategy's average bitcoin cost basis [3] - Bitcoin has since recovered and is trading near $78,000 [3]