MicroStrategy Inc., the largest corporate holder of Bitcoin, has increased the dividend on its STRC preferred stock to 11.50% for March 2026, up 25 basis points from February. Executive Chairman Michael Saylor announced the hike on social media platform X, marking the seventh increase since the preferred shares began trading in July 2025. The company uses this monthly pricing mechanism to anchor the STRC shares near their $100 par value, aiming to limit volatility.
The dividend adjustment comes as both MicroStrategy's Class A common stock (MSTR) and its massive Bitcoin holdings face pressure from a sustained market drawdown. Year-to-date, MSTR shares have declined 14.77%, while Bitcoin itself has dropped nearly 24% over the same period. Despite paper losses estimated at $6.6 billion on its BTC reserve, the company remains committed to its accumulation strategy.
Recent transaction evidence underscores this commitment. In late February 2026, MicroStrategy purchased approximately 592 BTC, continuing its pattern of buying during market weakness. Michael Saylor has publicly reinforced this stance, stating in a February 2026 CNBC interview, "We will continue buying Bitcoin each quarter forever." He also asserted the company has sufficient cash to handle debt and preferred dividends for an extended period, even in a down market.
The company's financing model is under scrutiny. CEO Phong Le stated in February that the firm plans to shift toward preferred share issuance over common stock to fund future Bitcoin purchases, seeking a lower-volatility capital raise vehicle compared to equity dilution. Historically, MicroStrategy has utilized a multi-channel approach including convertible notes and an at-the-market (ATM) equity program. A 2025 financing round via convertibles, for instance, coincided with the purchase of over 20,000 additional BTC.
However, analysts express caution. Cantor Fitzgerald recently highlighted the narrowing gap between MicroStrategy's market value and its Bitcoin net-asset value (mNAV), framing premium compression as a material risk if capital markets become less receptive to new issuance. Monness, Crespi, Hardt warned that the company's reliance on equity and preferreds could face limits, challenging the cadence of future accumulation. Critics like economist Peter Schiff have criticized the strategy's dependence on continual capital raises, suggesting it could prove fragile in a prolonged downturn.
Investors are now closely monitoring key signals: the frequency of new capital raises, the persistence of the mNAV premium, and whether Bitcoin weakness coincides with higher-than-expected dilution.
