Michael Saylor, executive chairman of Strategy, announced on X that the company increased the dividend rate on its Stretch (STRC) preferred stock this month. This marks the sixth such increase since the financial instrument first began trading in July 2025.

Strategy describes STRC as a short-duration, high-yield savings account for investors. The perpetual preferred stock pays monthly cash distributions, with its rate adjusted monthly to encourage stable trading near its $100 par value.

Consequently, STRC closed last Friday at $98.99, just slightly below its target par value. The company has raised a substantial $2.25 billion reserve specifically to meet dividend obligations on these perpetual offerings.

According to the company’s dashboard, the total annual dividend payout across its perpetual preferred stock is approximately $887 million. This financial move provides a cushion against market fluctuations.

Meanwhile, bitcoin’s price slid below $76,000 over the weekend, briefly pushing Strategy’s average bitcoin cost basis underwater. The cryptocurrency has since rebounded, trading near $78,000 at the time of the announcement.

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