Glossary
Every term used across this site, explained simply. Each entry links to the article that covers it in depth.
Preferred stock
A hybrid security that sits between bonds and common stock in a company’s capital structure. It pays a fixed dividend with priority over common stock dividends, but ranks below all debt. Usually carries no voting rights. Full guide →
Par value
The face (stated) value of a preferred share — $100 for STRC, SATA and BMNP, but $10 for CHAD. The dividend rate is set against par, and the issuers manage their rates to keep the market price trading close to it.
Effective yield
Your actual return based on the price you pay, rather than the stated rate against par. Buy below par and your effective yield is higher than the announced rate; buy above and it is lower. Why it matters →
Perpetual preferred stock
Preferred stock with no maturity date. The issuer never has to redeem your shares, so your return comes from the dividend stream and the price at which you eventually sell.
Cumulative dividends
A structure in which missed dividend payments accumulate as an obligation that must be settled in full before common shareholders can receive anything. Non-cumulative structures offer no such protection — a skipped payment is simply gone.
ATM programme (at-the-market)
A standing arrangement allowing an issuer to sell new shares gradually into the open market at prevailing prices, rather than in one large offering. The weekly capital raises tracked on the Money Flow page come mostly from ATM sales. See it in action →
VWAP (volume-weighted average price)
The average trading price of a security over a period, weighted by volume. STRC’s published dividend rate framework uses a five-day VWAP window to decide whether the rate should adjust — though since July 2026 Strategy has been holding the rate flat by discretion rather than following the bands mechanically. The STRC mechanism →
USD Reserve
Strategy’s ring-fenced cash reserve, usable only to pay preferred dividends and debt interest — any other use needs a separate board vote. Introduced as part of the June 2026 Digital Credit Capital Framework alongside the move to a 12.00% STRC rate; a board-set floor requires fresh authorisation if coverage ever drops below 12 months of expected payments. The current disclosed figure is shown on the STRC hub page. How the framework works →
Capital structure / capital stack
The ranking of a company’s obligations: debt is repaid first, then preferred stock, then common stock. Where an instrument sits in the stack determines who gets paid first in stress or liquidation. Strategy’s stack explained →
Record date and payment date
The record date is the cut-off for owning shares to qualify for a dividend; the payment date is when the cash arrives. You must hold the shares on the record date to receive that payment.
8-K filing
A report US public companies must file with the SEC to announce material events — dividend declarations, rate changes, and capital raises among them. Most data on this site traces back to 8-K filings.
Dividend frequency
How often payments arrive: STRC pays semi-monthly (24 times a year), SATA and CHAD pay daily on US market business days (~250 times a year), and BMNP pays weekly. Annual yield is unaffected by frequency, but faster payments mean more frequent compounding if you reinvest. Does frequency matter? →
Bitcoin treasury company
A public company that holds Bitcoin as a core treasury asset and typically raises capital — often via preferred stock — to buy more. Strategy (STRC) and Strive (SATA) are the two Bitcoin-treasury issuers tracked here; Bitmine (BMNP) follows the same playbook with Ethereum, and DeFi Development Corp. (CHAD) with Solana. Why they issue preferred equity →
Staking (proof-of-stake)
Locking up cryptocurrency to help run a proof-of-stake network like Ethereum, earning rewards in return. Bitmine stakes its Ethereum through its MAVAN validator network, and those rewards are what fund BMNP’s dividend — unlike STRC and SATA, whose Bitcoin earns nothing and simply has to hold its value. How BMNP is funded →
Redemption premium
An above-par price an issuer must pay to buy its preferred shares back early. BMNP can be bought back at 110% of par ($110) in the first 18 months, then 105%, then par — which helps anchor its price near term, the job STRC and SATA hand to their adjustable rate instead. CHAD carries one too: DeFi Development Corp. can buy it back at $11.00, 110% of its $10 stated value, at any time since it listed, with no step-down. For CHAD it sits alongside the variable rate rather than replacing it. Both are the issuer’s option, not a right for holders to sell back. BMNP’s price anchor →