Unstoppable: MSTR stock price continues to decline along with Bitcoin's sharp drop, MicroStrategy increases STRC preferred stock dividend to 11.5%

Under the dual pressure of Bitcoin prices falling and the company’s stock MSTR declining for eight consecutive months, MicroStrategy (Strategy), a Bitcoin reserve company, announced that it will increase the dividend rate of its perpetual preferred stock STRC (Stretch) to 11.5%. This is the seventh dividend increase since the product was listed in July 2025, highlighting the company’s gradual shift in financing strategy from common stock to preferred stock amid market turbulence.

MSTR stock price drops for the eighth month, Bitcoin plunges simultaneously

MicroStrategy (MSTR) stock has fallen nearly 20% this year and dropped 62% over the past six months, marking the eighth consecutive month of decline. Since the intraday high of $543 in November 2024, the stock has accumulated a 75% decline, closing last week at $129.50.

Meanwhile, Bitcoin’s price has fallen 16.37% in February and about 24.6% year-to-date, prompting many reserve companies (DAT) holding large amounts of Bitcoin to cut losses and sell BTC for cash. MicroStrategy’s average cost basis for its holdings is approximately $76,020.

With poor stock performance and sluggish crypto prices, MicroStrategy’s corporate capital pressure continues to rise.

Seventh dividend increase: STRC yield raised to 11.5%

Against this backdrop, MicroStrategy announced today that it will raise the annualized dividend on its STRC perpetual preferred stock by 25 basis points to 11.5%. The dividend is paid monthly and features a monthly reset interest rate mechanism to help keep the stock price near its $100 face value, transforming highly volatile digital capital into a product similar to fixed income to soothe investors panicked by recent crypto market declines.

STRC is a perpetual preferred stock with no maturity date, and the company is not required to buy it back at a specific time. The company stated that its design aims to reduce price volatility and encourage trading around the face value. During the market turbulence in February, STRC’s trading price once fell below $100. The recent dividend increase is seen as one of the measures to stabilize the price.

(Bitcoin wheel spinning? MicroStrategy pushes preferred stock STRC, focusing on high dividend and low volatility)

Shift in financing model: preferred stock replacing common stock as core tool

As common stock prices fluctuate significantly and lose their premium advantage, preferred stocks—defensive instruments—may become an important channel for future company liquidity. As MicroStrategy CEO Phong Le pointed out weeks ago, the company will gradually reduce issuing common stock as a source of funds for Bitcoin purchases and expand preferred stock issuance.

He stated that last year, about $7 billion was raised through STRC and other perpetual preferred stocks, accounting for 33% of the total preferred stock market, and expects preferred stocks to become the main financing mechanism before 2026.

Recently, the company has continued to increase its Bitcoin holdings, with the latest purchase of 592 BTC in mid-February, bringing total holdings to 717,722 BTC. Its position now shows an unrealized loss of about $7.9 billion, making it the stock with the highest short interest among U.S. companies with a market value over $25 billion.

(Enemy of the people? MicroStrategy’s Bitcoin holdings unrealized loss of $7.9 billion, ranking as the most shorted stock in the U.S.)

This article, titled “MSTR stock price declines and Bitcoin plunges, MicroStrategy raises STRC preferred stock dividend to 11.5%,” first appeared on Chain News ABMedia.