Ah, another month, another dividend hike on Strategy’s STRC preferred shares.
I can’t help but think back to how I first came across this one. It was late last year—my wife was reminding me (again) that our emergency fund was earning peanuts in the bank, while inflation quietly nibbled away. A colleague who’s been dabbling in US stocks via his Interactive Brokers account forwarded me a link to Strategy Inc (formerly MicroStrategy). “Eh, this one like high-interest savings but with Bitcoin behind it,” he said. I laughed at first—Bitcoin? Sounds risky for a middle-class guy like me with a stable job, CPF contributions, and two kids heading to primary school soon.
But I dug deeper. STRC, or “Stretch” as some call it, is Strategy’s perpetual preferred stock listed on Nasdaq. It’s designed to trade close to its US$100 par value, and the company adjusts the dividend rate monthly to keep it that way. Right now in March 2026, the annualized dividend is sitting at 11.50%, paid out monthly in cash. That’s more than triple what you’d get from safe Singapore fixed deposits or even some decent bonds these days. The share price has been hugging around US$99.90–$100 lately, with very low day-to-day swings—volatility around 2% in the past month. Not bad for something indirectly tied to the world’s biggest corporate Bitcoin hoard.
Strategy rebranded from MicroStrategy in 2025 and went all-in on being a “Bitcoin Treasury Company.” They hold hundreds of thousands of BTC, and instruments like STRC help them raise fresh capital to buy more without diluting the common shareholders (MSTR) too aggressively. The software business still brings in steady revenue from AI-powered analytics, but let’s be honest—the real story is the Bitcoin flywheel. Proceeds from STRC go straight into buying more BTC, strengthening the treasury that ultimately backs these preferred shares.
you do need to be comfortable with forex (USD exposure) and the usual withholding taxes on dividends (though qualified ones might get some relief depending on your setup). I haven’t put a huge chunk in yet—started small with part of my non-CPF cash, because CPFIS and SRS have their own rules and approved products. Still, the monthly payouts are attractive for topping up the family’s “rainy day” fund or even supplementing expenses without touching principal much.
The Opportunities That Appeal to MeWhat I like most is the relative stability in a volatile world. While Bitcoin and MSTR shares can swing wildly (MSTR has had a rough patch YTD as BTC corrected), STRC is engineered to stay calm. The board tweaks the dividend—recently hiking it to 11.50%—to pull the price back toward par. It feels like a hybrid: better yield than Singapore bank deposits or T-bills, with some indirect Bitcoin upside if the crypto market recovers over the long term. Many investors see it as a modern preferred stock with decent liquidity (hundreds of millions in daily volume on good days) and senior claim over common equity if things ever go south.
For middle-class folks here, where we’re used to balancing CPF, insurance, and property, this offers a way to chase higher income without going full crypto gambler. If Bitcoin grinds higher over cycles—as it has historically—the treasury gets stronger, supporting the whole setup. Plus, monthly cash flow is nice; it arrives predictably, which suits someone like me who budgets monthly for mortgage, tuition, and the occasional staycation in Johor.
The Risks—Let’s Not Sugarcoat ItOf course, nothing yielding over 11% is sleep-well-at-night guaranteed. First off, it’s perpetual—no maturity date. Your money stays in until Strategy decides to redeem (not obligated) or you sell on the open market. Dividend isn’t fixed forever; the rate can drop if market conditions change or if Bitcoin stays weak for a prolonged period. Strategy has reported hefty mark-to-market losses on its BTC holdings in the past, and while they have cash buffers and keep raising capital, a deep crypto winter could pressure their ability to sustain those payouts.This isn’t like parking money in a Singapore bank or government securities—there’s real credit risk tied to Strategy’s balance sheet, which is heavily concentrated in one volatile asset: Bitcoin. No collateral you can easily grab, no MAS-style protection. Currency risk matters too for us in SGD; USD movements can affect both the share price and the value of dividends when converted back. And as a foreign stock, there are brokerage fees, platform risks, and the general headache of US tax forms if you’re not careful.
A friend told me Don’t chase yield until you forget it’s still equity-like risk at the end of the day.” He’s right. If capital markets tighten and Strategy struggles to issue more preferreds to fund operations and dividends, things could get uncomfortable fast. It’s not diversified exposure; it’s leveraged bet on Bitcoin’s long-term story through a corporate wrapper.
He’s right. If capital markets tighten and Strategy struggles to issue more preferreds to fund operations and dividends, things could get uncomfortable fast. It’s not diversified exposure; it’s leveraged bet on Bitcoin’s long-term story through a corporate wrapper.My Take as a Regular Singapore InvestorI’m not going all-in—maybe 5-10% of my investable cash for now, treating it as an income booster rather than core holding. It complements my CPF OA/SRS stuff and local blue chips. The recent dividend hike to 11.50% amid Bitcoin’s drawdown actually made me add a bit more; the mechanism seems to be working as advertised so far.If you’re a fellow Singaporean middle-class investor curious about global opportunities beyond the usual STI or S&P 500 ETFs, STRC is worth researching. But do your own homework, consider your risk tolerance, time horizon, and how it fits with your overall portfolio (and tax situation). Speak to a financial adviser if needed—don’t just FOMO because of the juicy yield.Markets change fast, and what looks smart today could test your nerves tomorrow. For me, it’s a calculated tilt toward higher income with some crypto flavour, without quitting my day job.
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