Strategy raises preferred dividend rate by 0.25 percentage point…11.25% annually

Strategy, the world’s largest Bitcoin (BTC) treasury holder, has raised the dividend rate on its preferred shares “Stretch” by 0.25 percentage point.

Michael Saylor, Strategy’s chairman, said on the company’s official X account on the 1st (local time), “Starting this month, we are increasing the Stretch dividend rate by 0.25 percentage point to 11.25%.”

Stretch is a perpetual preferred issue that Strategy sold in July last year. It had been paying dividends of about 11% per year in cash on a monthly basis. The increased 11.25% dividend rate takes effect starting this month.

Meanwhile, Bitcoin plunged more than 6% on the day, putting Strategy’s average purchase price under pressure. The average purchase price of the Bitcoin Strategy has accumulated is about $76,000.

CoinDesk reported, “All of Strategy’s Bitcoin holdings are unencumbered assets,” adding, “Because they are not pledged as collateral, there is no risk of forced selling even if the (Bitcoin) price falls below the purchase price.”