Strategy's Dividend Streak Halts as Bitcoin Purchases Pause

Strategy halts its Bitcoin buying streak and STRC dividend hikes, signaling a shift in capital strategy as it leans on preferred shares for future crypto acquisitions.

Two significant financial activities at Strategy have simultaneously paused, offering fresh insight into the firm's capital strategy. The company's preferred share instrument, STRC, has left its dividend rate unchanged for the first time after seven consecutive months of increases. Concurrently, Strategy's 13-week streak of consistent Bitcoin acquisitions has come to a temporary stop.

A Dual Pause in Corporate Activity

The perpetual preferred stock, STRC, which launched in July 2025 with an initial yield of 9%, will pay an annualized dividend of 11.5% in April, mirroring the March payout. This static rate results from Strategy's unique monthly adjustment mechanism, designed to keep the share price anchored near its $100 par value. The company raises the dividend to attract buyers when the price trades below par and refrains from adjustment when it hovers near that level.

In March, the latter scenario played out. The volume-weighted average price over the preceding 30 days settled at $99.95, deemed sufficiently close to par to forgo a hike. However, market sensitivity was evident as the shares required twelve trading days to recover following the ex-dividend date on March 13.

Bitcoin Treasury Holds Steady Despite Buying Hiatus

For the week spanning March 23 to 29, Strategy engaged in no Bitcoin purchases and conducted no share sales under its At-The-Market (ATM) offering program. While this break in routine is notable, it does little to alter the company's substantial crypto position. Strategy's treasury holds 762,099 BTC, acquired at an average cost basis of approximately $75,694 per coin. According to data from SaylorTracker, this position currently represents unrealized losses exceeding $5.5 billion.

Taking a broader March view, the company's acquisition activity was formidable. It purchased 44,377 Bitcoin during the month, funded by $1.18 billion raised from STRC ATM sales and an additional $396 million from MSTR common stock ATM proceeds. This volume accounted for 94% of all Bitcoin bought by publicly traded companies in that period.

STRC's Role and Rising Competitive Pressures

CEO Phong Le has signaled a strategic shift toward greater reliance on preferred instruments like STRC within the company's 2026 capital structure. A newly established $42 billion ATM program, split between common stock and STRC shares, is intended to finance future Bitcoin acquisitions. Le notes that roughly 80% of STRC shares are already held by retail investors, indicating the instrument's appeal to yield-seeking investors who want Bitcoin exposure without the volatility of the common stock (MSTR).

Analysts at NYDIG suggest the primary risk lies not in dividend coverage—Strategy's Bitcoin holdings and over $2.2 billion in cash could theoretically fund payouts for about 50 years. A more critical scenario would involve a sharp decline in Bitcoin's price eroding confidence in the balance sheet, pushing STRC below its par value and thereby crippling the ability to raise new capital via ATM offerings.

Competition is emerging from Strive, whose own preferred share, SATA, recently reached its $100 par value for the first time, enabling it to also raise capital through an ATM program. SATA currently offers a 12.7% dividend yield—120 basis points higher than STRC—directly competing for the same yield-focused investor base.

While the common stock MSTR trades approximately 74% below its 52-week high, STRC continues to trade stably at par. The next dividend adjustment will be announced in late April, based on a snapshot date of April 15, with payment scheduled for April 30.