Strategy’s STRC Preferred: The Monthly Dividend Rate, Ranked

STRC’s first monthly rate was 9.00% a year on a $100 stated amount, with dividends payable monthly in arrears starting August 31, 2025. The 8-K says Strategy “has the right, in its sole and absolute discretion, to adjust the monthly regular dividend rate per annum,” and that its “current intention … is to adjust the monthly regular dividend rate per annum in such manner as Strategy believes will maintain the STRC Stock’s trading price at or close to its stated amount of $100 per share.” It also limits how far the rate can be cut in one month.⁴

Strategy published a rule of thumb for monthly rate changes based on STRC’s five-day average price: below $95.00, a recommended increase of 50 basis points (bp; 1 bp = 0.01 percentage point) or more; $95.00 to $98.99, 25 bp or more; $99.00 to $100.99, no change anticipated; $101.00 and above, a recommended decrease. The filing calls it a current intention, in Strategy’s sole discretion.¹ A February 5, 2026 update moved the test to the month’s volume-weighted average price and added that all recommended changes are subject to board approval.²

The rate rose from 9.00% to 10.00% for September 2025, then in steps of 25 bp: 10.25% for October, 10.50% for November, 10.75% for December, 11.00% for January, 11.25% for February and 11.50% for March 2026.⁵⁶ The filings state each new rate but do not give a reason for each step.

The rate stayed at 11.50% for March, April, May and June 2026.⁷⁸⁹

A June 29, 2026 8-K raised the rate to 12.00% for semi-monthly periods with record dates on or after July 1, 2026. It also replaced the price-band rule: Strategy said it “intends to evaluate the STRC dividend rate monthly based on a range of factors, including STRC trading levels, market yields, credit spreads, the price and volatility of bitcoin, USD Reserve coverage, capital market conditions, and the Company’s overall capital structure,” and “will not necessarily increase the STRC dividend rate solely because STRC trades below its stated amount.”¹⁰

The announcements of August 3, September 1 and October 1, 2026 each kept the rate at 12.00%. The August 3 filing says management “does not intend to recommend to our board of directors a change from the current 12.00% per annum dividend rate for STRC Stock until STRC Stock demonstrates sustained trading at or near its $100 stated amount.”¹¹¹²¹³

The October 16 8-K declares a 12.00% rate for November 1–30, 2026 on a daily-record-date basis, payable only if shareholders approve the daily-dividend amendments by 5:00 p.m. New York time on October 31 and the amended certificate is effective by 12:01 a.m. on November 1; the special meeting is on October 28, 2026. If not, the already-declared November 15 dividend is payable instead.¹⁴³ For the mechanics, see how daily preferred dividends work. This post makes no forecast about the vote.

The special-meeting proxy statement lists 94,558,175 STRC shares outstanding as of September 15, 2026, about $9.456 billion at the $100 stated amount.³ The IPO on July 29, 2025 was 28,011,111 shares.⁴ Strategy has since reported STRC repurchases, so the September count is not current.