Strategy’s formerly MicroStrategy, ticker MSTR perpetual preferred stock, known as Stretch (STRC), continues to trade at or slightly above its $100 par value as of early March 2026.
This stability is by design: the company adjusts the variable dividend rate monthly; currently set at 11.50% annualized for March 2026, up from 11.25% in February to anchor trading near par, minimizing volatility and attracting income-focused investors while enabling efficient capital raises.
When STRC trades at or above $100, Strategy can activate its at-the-market (ATM) issuance program to sell new shares. Proceeds from these sales fund Bitcoin purchases without heavily diluting common stock (MSTR). Recent activity highlights this mechanism in action.
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On March 3–4, 2026 (around the query timeframe), STRC saw high trading volume (e.g., over $198 million on one day, with significant portions above par), signaling major ATM activity. Estimates from trackers like STRC.live indicated this supported Strategy acquiring roughly 1,000 BTC in a single day—the largest one-day accumulation via STRC since its July 2025 debut. Combined with prior days, totals reached ~1,762 BTC over a short period.
Earlier in the month, Strategy reported buying 3,015 BTC for ~$204 million; average ~$67,700/BTC, pushing total holdings to 720,737 BTC. This preferred stock approach reduces reliance on common equity issuance, as noted by CEO Phong Le, amid Bitcoin’s price fluctuations.
However, related prediction markets on Polymarket include: Bets on whether Strategy will announce holdings of 740k+ BTC by March 31, 2026 implying ~19k+ net purchases from current ~720k levels. Markets for specific weekly announcements >1,000 BTC purchase in early March periods.
Broader BTC price outcomes for March, but nothing exactly matching “20K BTC bought.” Current pace shows strong but not yet 20k-level monthly accumulation; thousands per week via STRC and other means. If STRC remains above par with sustained high volume, it could accelerate buys, but 20k+ for the full month would require exceptionally aggressive issuance amid market conditions.
Polymarket’s crowd wisdom currently reflects optimism for continued accumulation but no consensus on that high threshold in available markets. Strategy’s STRC is a perpetual preferred stock with a variable dividend mechanism designed to maintain price stability near its $100 par (stated) value.
This structure makes it function somewhat like a high-yield, low-volatility fixed-income instrument while funding the company’s Bitcoin acquisitions through ATM (at-the-market) issuances when trading at or above par. The annualized dividend rate is adjustable monthly at the company’s discretion. It started at 9.00% upon launch in July 2025 and has increased over time—reaching 11.50% for March 2026 (up 25 basis points from 11.25% in February, marking the seventh hike).
Dividends are cumulative (meaning unpaid amounts accrue) and paid monthly in cash (in arrears) on the last day of each month; next payout for March: March 31, 2026, to shareholders of record around mid-month. The rate applies to the $100 stated amount per share, so at 11.50%, the monthly cash dividend is approximately $0.9583 per share ($100 × 11.50% / 12).
Strategy explicitly adjusts the rate monthly “to encourage trading around STRC’s $100 par value and to help strip away price volatility.” If shares trade below $100; due to market pressure or rising rates elsewhere, the company increases the rate to boost yield and attract buyers, pulling the price back toward par.
If shares trade above $100, the rate could theoretically decrease, though recent trends show mostly increases amid Bitcoin/MSTR volatility. This dynamic helps keep STRC stable often trading very close to $100, like $100.05 recently, unlike the highly volatile common stock (MSTR).
Reductions are limited; no more than 25 basis points plus certain SOFR-based adjustments from the prior period, and not below one-month term SOFR. The company cannot lower the rate unless all prior accumulated dividends are paid in full. The intention is to set the rate in a way that maintains trading near $100, though it’s at the board’s sole discretion with some safeguards for investors.
Compounding if Unpaid: If a dividend isn’t paid on time, it accumulates as “compounded dividends” at the then-current rate until paid. STRC dividends have priority over common stock dividends. Strategy maintains reserves and uses proceeds from STRC issuances when above/at par to help cover obligations, reducing reliance on dilutive common stock sales.
This mechanism positions STRC as a “digital credit” or high-yield preferred alternative, appealing to income-focused investors seeking Bitcoin exposure with lower volatility. The effective yield is close to the stated rate when trading near par currently ~11.49–11.50%.
However, dividends aren’t guaranteed, and the rate could drop significantly in the future if conditions allow though recent history shows upward adjustments to defend par amid market drawdowns.