What is a basis point? STRC dividend yield rises to 11.25%

2026-02-16 19:14:03

Abstract generation in progress

Michael Saylor announced on the X platform that the February dividend yield for Strategy Perpetual Preferred Stock (STRC) has interestingly increased. The yield has been raised by 25 basis points, reaching 11.25%. To better understand this investment product, let’s explore the significance of this announcement in detail.

Basic Explanation of Basis Points

A basis point is a unit used in financial markets to express changes in interest rates or yields. One basis point equals 0.01%, and 100 basis points equal 1%. Therefore, an increase of 25 basis points in the STRC dividend yield means a rise of 0.25%. In the finance industry, using basis points allows for more precise and concise numerical expressions.

Details of the Increase in STRC Dividend Yield

Strategy Perpetual Preferred Stock (STRC) is positioned as a short-term high-yield credit product, with monthly cash dividends paid out. A dividend yield of 11.25% as of February offers attractive returns for investors. Notably, this dividend yield is adjusted monthly. Fine-tuned adjustments in basis points in response to market conditions and interest rate trends help maintain the competitiveness of the investment product.

Strategic Fundraising and Bitcoin Increase

Strategy utilizes issuance of the product at market prices linked to the STRC (ATM) to flexibly issue shares. This mechanism enables more capital raising, which can ultimately be used to increase Bitcoin holdings. Raising the dividend yield in response to rising interest rates is a strategic decision to strengthen market funding competitiveness.

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