Strategy Raises STRC Dividend to 10.25%, Expands Bitcoin Treasury

Strategy announced a significant dividend rate increase on its Variable Rate Series A Perpetual Stretch (STRC) Preferred Stock from 10% to 10.25%, effective October 1, according to a September 30 SEC filing. The company declared a cash dividend of $0.854166667 per share on STRC, payable October 31 to stockholders of record as of October 15, reflecting the new 10.25% annual rate. This adjustment marks the second rate increase for STRC in under 30 days, following Strategy’s previous raise from 9% to 10% on September 2.

The dividend announcement coincided with Strategy’s disclosure of a substantial Bitcoin purchase of 4,048 BTC worth $449.3 million. This acquisition brought Strategy’s total Bitcoin holdings to 636,505 BTC, purchased at an aggregate cost of $46.95 billion. The position represents over 3% of Bitcoin’s capped supply and ranks among the largest corporate holdings of the digital asset, solidifying Strategy’s position as a major player in corporate Bitcoin treasury management.

Strategy financed the September Bitcoin purchase through a combination of $425.3 million in Class A common stock sales and $46.5 million from preferred share programs, including STRK, STRF, and STRD offerings. This funding mix drew criticism from prominent short seller James Chanos, who claimed the firm “reduced its leverage” by relying heavily on common equity rather than preferred stock. Chanos argued that the imbalance suggests weak investor appetite for income-focused securities, potentially indicating market skepticism about Strategy’s preferred stock offerings.

Despite this criticism, Strategy countered that demand for its preferred shares remains strong. The company has raised $5.6 billion through preferred stock offerings in 2025, accounting for 12% of all US initial public offerings this year. Strategy launched STRC in July as a non-convertible, variable-rate security designed to deliver adjustable income, with the stock trading on the Nasdaq alongside Strategy’s other preferred securities and Class A common shares.

Bitcoin treasury companies like Strategy are facing increasing scrutiny over their capital-raising structures, particularly Private Investment in Public Equity (PIPE) deals, which can create potential downward pressure on share prices. A September 25 CryptoQuant report found these stocks frequently gravitate toward discounted issuance levels, creating losses for current investors. The report highlighted Kindly MD, which surged 18.5 times following its May PIPE announcement before collapsing 97% to match its $1.12 PIPE price.

Similar pressures are evident across the sector, with Strive trading at $3.00, down 78% from 2025 highs, while its $1.35 PIPE price suggests potential for further declines when investors can sell next month. On September 26, reports indicated that US watchdogs are investigating the activities of digital asset treasury companies. According to the report, the SEC and other regulators are examining whether these firms, or individuals connected to them, benefited from trades taking place before official crypto acquisition announcements.

The combination of dividend increases, massive Bitcoin accumulation, and regulatory scrutiny places Strategy at the center of evolving discussions about corporate cryptocurrency strategies and preferred stock financing. As the company continues to expand its Bitcoin treasury while adjusting dividend rates on securities like STRC, market participants and regulators alike are closely monitoring how these strategies will perform amid increasing regulatory oversight and market volatility.