Strategy Raises STRC Dividend Rate by 12%, Approves $2B Buybacks

Business intelligence firm Strategy has taken a step to ensure there is sufficient liquidity in its ecosystem while maintaining its bitcoin acquisition practice.

Through its “Digital Credit Capital Framework,” the company has raised the annual dividend rate for its preferred stock, Stretch (STRC), by 12%. Strategy also approved a $2-billion-buyback program that concerns other stocks it offers.

Strategy Increases STRC Dividend

The business intelligence company aims to achieve two goals by raising its STRC dividend rate by 12%. First, it noted that the increase aims to help STRC stay as close as possible to its $100 price mark.

Recall that Stretch has struggled below this price target for several weeks. At the time of writing, it sold at $84, representing a 13% today. To help augment the asset, Strategy CEO Phong Le invested $1 million in the stock last week.

Despite this intended goal, Strategy noted that it doesn’t guarantee that STRC will reach or maintain its stated value of $100.

Another reason for raising the dividend rate is to boost market confidence in the company’s “Digital Credit Securities,” the umbrella term for all four securities it offers investors. They are Stretch (STRC), Stride (STRD), Strike (STRK), and Strife (STRF). This excludes its Class A common stock, MSTR.

Since its August 2025 debut, STRC has seen multiple changes to its dividend rate. As seen in the image below, the dividend rate started at 9% and has since hovered around 10% and 11.5%.

Notably, the latest dividend rate coincides with Strategy’s semi-monthly cadence, where investors get paid twice a month. As a result, starting July 2026, eligible investors will receive approximately $0.5 per share twice monthly.

A $2B Buyback Approval

Strategy’s board also authorized up to $1 billion in repurchases of its Digital Credit Securities. It also established another repurchase program of up to $1 billion for MSTR. Still, the buybacks are subject to various factors, such as market conditions, before they can be executed.

Defending the latest initiative, Strategy co-founder Michael Saylor said:

“This framework is designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive. This framework also sets out how we plan to use our capital management toolkit while maintaining our commitment to long-term Bitcoin exposure.”

Strategy added in its announcement that it may occasionally sell BTC “BTC Monetization Program” to cover expenses and augment its $1.25 billion USD reserve whenever necessary. It explained that any BTC monetization outside these reasons would require further board deliberation.