Bitcoin News Today: STRC's 10% Yield Signals a New Era for Bitcoin-Backed Income

Strategy (MSTR) has increased the annual dividend on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to 10%, up from 9%, to incentivize investors and support its goal of pushing the stock closer to its $100 target price. The adjustment, announced on September 2, will result in a monthly dividend of $0.8333 per share for September, with payments expected on September 30 to shareholders of record as of September 15. This marks the first dividend increase since STRC’s initial offering in July, which was heavily oversubscribed. The company has also declared dividends for its other preferred stock series, including STRF, STRK, and STRD, reflecting the updated payout structure.

Alongside the dividend boost, Strategy has added 4,048 BTC to its holdings, bringing its total Bitcoin balance to 636,505 BTC. The company has been systematically selling tranches of preferred stock to raise capital for additional BTC purchases. This strategy is designed to build a diversified, high-yield, and low-volatility investment vehicle backed by a 5-to-1 Bitcoin overcollateralization ratio—meaning each dollar of dividend payment is supported by $5 in Bitcoin reserves. STRC is currently trading near $97, slightly below the $100 par value target, which is essential to maintaining the company’s at-the-money (ATM) issuance program and continued Bitcoin acquisition capacity.

The 10% yield on STRC currently stands at 10.3% based on the stock’s market price, offering one of the highest effective yields among similar preferred securities. Strategy’s executive chairman, Michael Saylor, emphasized that the dividend increase is part of a broader effort to stabilize and elevate the price of STRC. The company has provided guidance on dividend management based on the five-day volume-weighted average price (VWAP) of STRC, ensuring a systematic and transparent approach to payouts. This strategy is intended to align investor expectations with the company’s long-term financial goals while preserving capital discipline.

The broader context of Bitcoin treasury companies is evolving as well. While some view these firms as speculative arbitrage opportunities, others argue they represent the foundation of a new institutional architecture for Bitcoin. These firms, including Strategy, are not merely holding BTC but are exploring ways to allocate it with strategic intent, potentially building Bitcoin-specific capital markets over time. This shift from speculative balance sheets to institutional-grade BTC management positions companies like Strategy at the forefront of a new financial ecosystem.

The recent move to boost STRC’s dividend demonstrates Strategy’s commitment to maintaining its competitive edge in the yield-seeking market, particularly as demand for high-dividend assets remains strong in an environment of elevated interest rates. The company’s continued Bitcoin purchases and structured dividend approach suggest a long-term vision that goes beyond short-term market exposure. As the firm expands its treasury holdings and refines its issuance strategies, the role of preferred securities like STRC in delivering reliable, Bitcoin-backed yields is likely to gain greater recognition among institutional and retail investors alike.

Source: [1] Strategy Raises Dividend on STRC Offering to Attract Yield-Seeking Investors (https://www.coindesk.com/markets/2025/09/03/strategy-raises-dividend-on-strc-offering-to-attract-yield-seeking-investors) [2] Strategy Hikes STRC Dividend to 10% (https://finance.yahoo.com/news/strategy-hikes-strc-dividend-10-103149154.html) [3] Bitcoin Treasuries Aren't Arbitrage — They're the Next Endowments (https://www.institutionalinvestor.com/article/bitcoin-treasuries-arent-arbitrage-theyre-next-endowments) [4] Crypto and Financial Freedom (https://onekey.so/blog/ecosystem/crypto-and-financial-freedom/)