Strategy raised the annual dividend rate on its Variable Rate Series A Perpetual Stretch (STRC) Preferred Stock from 10% to 10.25%, effective Oct. 1.

The company disclosed the change in a Sept. 30 SEC filing, also declaring a cash dividend of $0.854166667 per share on STRC, payable Oct. 31 to stockholders of record as of Oct. 15. The payout reflects the new 10.25% annual rate.

Second increase

The adjustment marks the second rate increase for STRC in under 30 days. Strategy previously raised the dividend from 9% to 10% on Sept. 2, the same day it disclosed a Bitcoin purchase of 4,048 BTC worth $449.3 million.

The 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 asset.

Strategy financed the September purchase through $425.3 million in Class A common stock sales and $46.5 million from preferred share programs, including STRK, STRF, and STRD offerings.

Short seller James Chanos criticized the funding mix, claiming the firm “reduced its leverage” by relying heavily on common equity rather than preferred stock. He argued that the imbalance suggests a weak investor appetite for income-focused securities.

Strategy countered that demand 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.

The firm launched STRC in July as a non-convertible, variable-rate security designed to deliver adjustable income. The stock trades on the Nasdaq alongside Strategy’s other preferred securities and Class A common shares.

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Author: Gino Matos