STRC — Strategy's Perpetual Preferred Stock
Annual Dividend Rate
12.00%
Announced rate (issuer disclosed)
Effective Yield at Current Price
12.00%
Based on $12.00 annual dividend at $100 par
Distribution Frequency
Semi-Monthly
~$0.50 per share/semi-month
USD Reserve
$5.02B
USD Cash component $1.00B, used to fund STRC buybacks and preferred dividends · disclosed Sep 27, 2026
About STRC
STRC is Strategy's perpetual preferred stock, listed on the Nasdaq. It pays a 12.00% annual dividend distributed semi-monthly in cash (~$0.50 per share twice a month). Strategy publishes a four-band framework tying the rate to STRC's five-day VWAP against $100 par, but since the rate rose to 12.00% in July 2026 management has said each month it will recommend holding the rate flat there until STRC shows sustained, healthy trading near par — a discretionary override of what the published bands would otherwise trigger, confirmed again in Strategy's own filings through at least August 2026. The rate rise and the ring-fenced USD Reserve shown below both came out of the same June 2026 Digital Credit Capital Framework announcement, after STRC's price fell well below par. Semi-monthly payments approved by shareholders on 8 June 2026; first semi-monthly payment on 15 July 2026. STRC is available on most major brokerage platforms.
As preferred stock, STRC sits below debt but above common equity in Strategy's capital structure. In the event of liquidation, preferred stockholders are paid before common shareholders, giving STRC a degree of protection that pure equity does not offer. Strategy's holdings of over 847,666 Bitcoin provide a substantial asset base underpinning the instrument.
Strategy (formerly MicroStrategy) is a Nasdaq-listed business intelligence and Bitcoin treasury company, founded in 1989. Under executive chairman Michael Saylor — one of the world's most prominent Bitcoin advocates — Strategy has made Bitcoin accumulation central to its corporate model, positioning itself as the world's largest corporate holder of Bitcoin.
The one number I watch on STRC is how close it's trading to $100 — buy near or below par and the effective yield works in your favour; pay a premium and your real yield comes in under the headline rate. Worth knowing: the published VWAP bands aren't currently driving the rate month to month — management is holding it flat by choice while the price recovers, so don't assume the next print automatically follows the band table.
Visit Strategy.comHow STRC is structured
Who ranks ahead of it, who ranks behind it, and where the dividend money comes from.
~$6.7B outstanding · Fixed maturity · Paid first in all scenarios
10% fixed rate · Quarterly payments · Most senior preferred
12.00% variable rate · Semi-monthly payments · Second most senior preferred
10% fixed rate · Quarterly EUR payments · EEA professional investors only
8% fixed rate · Convertible into MSTR common stock
8% stated rate · Most junior preferred · Trades below par
Absorbs losses first · No dividend priority · Uncapped upside
Strategy Inc capital structure as of June 2026 · Source: SEC 424B5 prospectus filings
Where the money for dividends sits, and where it flows (Strategy's 8-K, 27 September 2026):
What ranks above it
~$6.7bn of convertible senior notes. Debt is paid first in every scenario, ahead of all preferred and common, including a claim on the 847,666 Bitcoin. Many pay 0% interest; holders are in it for the option to convert into MSTR common.
STRF (10% fixed, quarterly) is the only preferred series that ranks above STRC. Strategy's prospectus says so directly: STRC is senior to common, STRE, STRK and STRD, but "the company's indebtedness and STRF Stock rank senior".
What ranks below it
STRE (euro, 10% fixed, EEA professional investors only), STRK (the convertible, into MSTR) and STRD (8% stated, most junior preferred) all rank below STRC.
MSTR common stock sits at the bottom: it absorbs losses first, gets paid last, and keeps the uncapped upside.
How the dividend is financed
Bitcoin earns no yield, so the dividend isn't paid by the coins. It is paid from two dollar pots, which is the most complex part of the structure:
USD Reserve ($5.02B). Ring-fenced for preferred dividends and debt interest only; any other use needs a board vote. Strategy's own figures imply an annual bill of about $1.76bn across all its preferreds and interest, so the Reserve covers roughly 34 months against a board floor of 12 (my arithmetic on the 27 September figures). It was built mainly by selling MSTR common stock.
USD Cash ($1.00bn). The flexible pot, created 24 August 2026. It can buy Bitcoin, buy back stock, pay dividends and interest, repay convertibles or top up the Reserve. Since early September it has funded the STRC buybacks.
Backstops. Strategy can also sell Bitcoin under its monetisation programme (up to $1.25bn authorised) and raise new money in the capital markets. STRC itself can't be used to buy Bitcoin at the moment, because it trades below par. Strategy has spent $1.28bn buying STRC back, and has proposed paying STRC's dividend every calendar day, subject to a shareholder vote.
Read more: Strategy's capital structure · The two cash pots and $1.28bn of buybacks · Strategy Transforms
Tools
Live Price Chart
Track the STRC market price in real time against its $100 par value. As the price moves, the effective yield changes — use the chart to spot when STRC is trading at a premium or discount and understand what that means for your entry yield.
Growth Projector
Enter an investment amount and time horizon to model your projected income and portfolio growth from holding STRC. Adjust the reinvestment rate to see the compounding effect, and compare returns against US Treasuries and bank savings side by side.
vs Treasuries
Compare the income from STRC's dividend against US Treasuries and bank savings over any time period. Enter your investment amount and the tool shows the difference in dollar terms.
Dividend History
A complete record of every STRC dividend payment — per-share amount, payment date, and record date. Enter your holding size to calculate exactly how much you received or will receive from each distribution.
A yield like this always comes with risk — board discretion over dividends, rate changes, and crypto-collateral volatility among them. Read the full risk guide →
Important Disclaimer
Digital Credit Yield is not a financial advisor. All content is provided for educational and research purposes only. Nothing on this site constitutes financial advice, investment advice, or a solicitation to buy or sell any financial instrument. Always consult a qualified financial adviser before making investment decisions.