STRC; ticker for Strategy’s “Stretch” perpetual preferred stock is designed as a high-yield, low-volatility income product — often described by the company as a “short-duration high-yield credit” or Bitcoin-backed “money market equivalent.”
Its yield mechanics revolve around a variable dividend rate that’s adjusted monthly to target price stability near $100 par value. STRC has no maturity date; it’s perpetual preferred stock. Strategy isn’t obligated to redeem or buy it back at any fixed time.
Currently set at 11.50%, based on the $100 stated amount. This rate applies to the par value, not the trading price. Dividends are paid monthly in cash for March 2026, the monthly payout is roughly $0.9583 per share, or 11.50% / 12. The next payout is scheduled for March 31, 2026.
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Strategy’s board sets the rate each month “in its sole and absolute discretion,” with the explicit goal of encouraging trading around $100 and minimizing price volatility.If STRC trades significantly below $100 due to market pressure or reduced demand, the company typically increases the rate to make it more attractive ? boosting demand ? pulling the price back toward par.
On March 1, 2026, Strategy hiked it by 25 basis points from 11.25% to 11.50% — the seventh increase since launch in July 2025 — amid MSTR/common stock weakness and BTC drawdowns. Downward adjustments are possible but restricted; can’t drop more than ~25 bps + SOFR changes from the prior period, can’t go below one-month SOFR, and only if prior dividends are fully paid.
The stated annualized rate is 11.50% at par. If trading slightly away from $100 current price ~$99.83, the effective yield becomes ~11.52% higher if below par, lower if above. This is what income-focused investors actually earn. Strategy uses proceeds from selling STRC shares via ATM programs or direct issuances to buy more Bitcoin. The growing BTC treasury indirectly “backs” the dividends though not a hard collateral like a stablecoin.
Higher BTC value ? stronger balance sheet ? more confidence in paying/sustaining high yields ? more STRC demand ? more capital to buy BTC. It’s a self-reinforcing loop, turning traditional yield-seeking capital into relentless BTC accumulation.
Dividends are not guaranteed — declared by the board out of legally available funds. If missed, they accumulate cumulatively with compounding and must be paid before common dividends. Unlike stablecoins, there’s no redemption mechanism or FDIC insurance. Price can deviate; dipped to ~$97 in late 2025, though adjustments aim to pull it back.
Seniority — Preferred over common stock (MSTR) for dividends/liquidation, but junior to debt. Tax note — Some dividends have been treated as non-taxable return of capital for certain U.S. holders depends on your situation; check with a tax advisor. 30-day historical volatility is low ~2.3–2.4%, far below MSTR’s wild swings.
In short: STRC’s yield isn’t fixed like traditional preferreds — it’s a dynamic tool Strategy tunes monthly to keep the price anchored at ~$100 while delivering juicy ~11.5% payouts. This appeals to yield-hungry investors who want BTC exposure without direct crypto ownership or MSTR’s equity rollercoaster.
The recent hikes show it’s responsive to market conditions to maintain that stability. Saylor’s new secret sauce isn’t just MSTR common stock anymore — it’s STRC, a high-yield preferred equity product nicknamed “Stretch.” It trades on Nasdaq, pays a variable monthly dividend currently ~11.5% yield, and is designed to stay pinned near its $100 par value.
Think of it as a Bitcoin-backed “money market equivalent” for fixed-income investors who want juicy yields without touching actual crypto or stablecoins. Roughly $1.1 billion of last week’s purchase came from STRC sales, with the rest from MSTR stock.
This isn’t a one-off — STRC has been exploding in volume, with analysts estimating it alone funded thousands of BTC in single-day bursts recently. Saylor’s essentially built a flywheel: sell STRC to yield-hungry institutions ? buy more BTC ? back the yield with the growing treasury.