Strategy Raises STRC Dividend Rate to 10.25% with October 2025 Payout
Strategy has announced another dividend rate increase for its STRC preferred stock, raising the annual rate from 10.00% to 10.25%. The company declared a cash dividend of $0.854166667 per share on STRC, payable October 31 to stockholders of record as of October 15. This marks the second rate adjustment for the bitcoin-backed security since its launch earlier this year.
The latest move demonstrates Strategy’s commitment to attracting yield-seeking investors through its innovative preferred stock offering. The STRC dividend increase comes as the company continues expanding its bitcoin treasury strategy while providing consistent returns to shareholders.
STRC Dividend Rate Climbs Higher for October Distribution
The 25 basis point increase represents the second rate adjustment for STRC, reflecting Strategy’s flexible approach to dividend policy. The company maintains sole discretion to modify the monthly regular dividend rate for subsequent periods. This adjustment capability allows Strategy to respond to market conditions while keeping the preferred stock attractive to investors.
The October cash distribution reflects the new 10.25% annual rate structure. Shareholders who hold STRC as of the October 15 record date will receive the payment by the end of the month. This monthly payout schedule distinguishes STRC from traditional quarterly dividend stocks.
Bitcoin-Backed Preferred Stock Offers Unique Value Proposition
STRC became the first U.S. exchange-listed perpetual preferred security issued by a Bitcoin Treasury Company to pay monthly dividends. The security trades on Nasdaq and exposes investors to bitcoin treasury growth alongside regular income distributions.
The payout features 5-to-1 bitcoin overcollateralization, meaning roughly $5 worth of bitcoin backs every $1 of promised dividend on an STRC share. This structure adds a layer of security for dividend payments while connecting returns to Strategy’s substantial bitcoin holdings.
Strategy launched STRC through a $2.521 billion initial public offering in July 2025. The company sold 28 million shares at $90 each, marking the largest U.S. IPO in 2025 by gross proceeds. These funds enabled Strategy to acquire additional bitcoin for its treasury operations.
Strategy STRC Dividend Strategy Attracts Income-Focused Investors
The variable rate structure of STRC dividends provides flexibility that benefits both the company and shareholders. Strategy can adjust rates based on market dynamics and corporate performance. Investors gain access to a bitcoin-linked security that generates monthly cash flow.
The preferred stock appeals to investors seeking yield in addition to bitcoin exposure. Traditional bitcoin investments provide capital appreciation potential without regular income distributions. STRC bridges this gap by combining treasury company growth with consistent dividend payments.
Strategy’s dividend increases signal confidence in its business model and bitcoin treasury operations. The company continues accumulating bitcoin while maintaining dividend obligations to STRC shareholders. This dual approach creates value through asset appreciation and regular income generation.
Understanding the STRC Preferred Stock Dividend Payment Model
Monthly dividend distributions distinguish STRC from conventional preferred securities. Most preferred stocks pay quarterly dividends, making STRC’s monthly schedule more frequent. This structure benefits investors who prefer regular cash flow for income planning or reinvestment strategies.
The perpetual nature of STRC means no fixed maturity date exists. Shareholders receive dividends indefinitely as long as they hold the security, and the Strategy continues payments. This characteristic resembles traditional preferred stocks while incorporating bitcoin treasury company dynamics.
Conclusion
The strategy board determines dividend rates each period, providing management flexibility. Current market conditions, bitcoin treasury performance, and shareholder value all factor into rate decisions. The recent increase to 10.25% reflects management’s assessment of these variables.
