TL;DR
STRC ("Stretch") is Strategy’s (formerly MicroStrategy) Variable Rate Series A Perpetual Preferred Stock, listed on Nasdaq. It pays monthly cash dividends at a variable rate, currently 11.50% per annum on a $100 stated amount. Strategy adjusts the rate each month to keep shares trading near par. Proceeds from STRC sales go almost entirely toward buying Bitcoin. As of April 2026, Strategy holds 780,897 BTC. STRC is not Bitcoin, not FDIC insured, and not collateralized by Bitcoin. It is a high-yield preferred equity instrument whose performance depends on Strategy’s financial health and, by extension, BTC’s price.
Introduction
STRC launched in July 2025 through a $2.5 billion IPO and has since become Strategy’s primary vehicle for raising capital to buy Bitcoin. Executive Chairman Michael Saylor has called it the company’s "iPhone moment." The pitch: high yield, monthly cash, and price stability near $100. This guide covers how STRC works, its dividend history, the Bitcoin connection, and what the risks actually look like.
STRC is a traditional Nasdaq-listed equity security from Strategy (formerly MicroStrategy), a corporation whose primary asset is Bitcoin. Different category, different risks, different portfolio function.
What Is STRC?
STRC is Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, traded on Nasdaq. It sits between common equity and debt in the capital structure: preferred shareholders get priority over common shareholders for dividends and liquidation claims.
- Variable dividend rate: Changes monthly. Strategy adjusts it to keep STRC trading near its $100 par value.
- Monthly cash payments: Paid at month-end to shareholders of record as of the 15th.
- Perpetual: No maturity date. Strategy never has to buy these back.
- Cumulative: Missed dividends accumulate and compound at the prevailing rate.
- Not convertible: Cannot be exchanged for common MSTR shares (unlike STRK).
STRC priced at $90/share on July 24, 2025 (settled July 29), issuing 28,011,111 shares for net proceeds of ~$2.47 billion. Nearly all of it went toward buying Bitcoin.
Source: Strategy Inc SEC Form 8-K, July 2025 (SEC EDGAR)
How the STRC Dividend Works
Strategy sets the monthly dividend rate at its sole discretion, using a rules-based framework tied to STRC’s market price relative to $100 par. When STRC trades below par, the rate goes up. When it trades at or above par, the rate holds or may decrease. The initial rate was 9.00%. It was raised seven consecutive months, reaching 11.50% by March 2026. April 2026 was the first month the rate held steady, as the VWAP hit $99.95.
STRC Dividend History
*Aug 2025 accrued from July 29. Per-share figures rounded; exact April 2026 declared amount is $0.958333333 per SEC filing.
Source: Strategy Inc SEC filings via SEC EDGAR
The STRC Bitcoin Connection
Capital raised from STRC goes almost entirely toward buying Bitcoin. As of April 13, 2026, Strategy holds 780,897 BTC at a cumulative cost of ~$59.02 billion ($75,577 avg). That is roughly 3.8% of Bitcoin’s circulating supply, making Strategy the largest corporate BTC holder by a wide margin. Verify via strategy.com/purchases or bitcointreasuries.net.
In just the week of April 6-12, 2026, Strategy sold 10.03 million STRC shares via its ATM program, raised ~$1 billion, and used it to buy 13,927 BTC at $71,902 avg. Since launch, STRC has financed the acquisition of nearly 70,000 Bitcoin. Roughly $21.6 billion in STRC shares remain authorized for future issuance.
Understanding STRC Yield
The stated rate is 11.50% on the $100 stated amount (~$0.9583/share/month). But effective yield depends on your purchase price. At $99, your effective yield is slightly above 11.50%. The 52-week range of $88.00 to $100.42 means effective yields have ranged from ~11.45% to ~13.07%. You can track STRC live pricing and dividend updates at strategy.com/strc/learn.
Tax note: Strategy currently expects STRC dividends to be treated as non-taxable return of capital (ROC), reducing your cost basis rather than triggering immediate income tax. This is stated in the March 31, 2026 SEC filing (ROC info). Consult a tax professional for your situation.
Key Risks
Bitcoin price dependency. Strategy reported $14.5 billion in unrealized losses on digital assets in Q1 2026 after BTC dropped ~20% from highs. If Bitcoin enters a sustained bear market, Strategy’s ability to meet preferred obligations is directly threatened.
Dividend rate is discretionary. Strategy can lower the rate at any time. Their own disclaimer: the "current rate is not indicative of future rate" and "may be significantly lower."
No collateral backing. Despite the "Bitcoin-backed" label in media, Strategy’s own disclosure states: "The Company’s preferred securities are not collateralized by the Company’s bitcoin holdings and only have a preferred claim on the residual assets." STRC holders have no direct claim on any specific BTC.
Cash flow gap. Strategy’s software business does not generate enough cash to cover preferred dividends. A $2.25 billion reserve (set up February 2026) covers ~2.5 years of obligations. If depleted before new financing materializes, dividends are at risk.
Our Insight: The Reflexivity Trap
STRC works well when Bitcoin is stable or rising: shares trade near par, Strategy issues more via ATM, buys more BTC, repeat. But in a downturn, the same loop reverses. STRC drops below par, forcing a higher dividend rate (more cash obligations) exactly when Bitcoin holdings lose value and ATM issuance becomes harder. Independent analyst Derin Olenik has flagged that STRC obligations are compounding at ~30% monthly due to ATM growth, sustainable only while market access stays wide open. Bottom line: if you buy STRC, you need a view on Bitcoin, not just on the yield number.
FAQs
Does STRC pay monthly?
Yes. Dividends are paid on the last calendar day of each month to holders of record as of the 15th. Next payout: April 30, 2026.
Is STRC the same as Bitcoin?
No. STRC is a Nasdaq-listed preferred stock. Owning it gives you indirect Bitcoin exposure through Strategy’s treasury, not direct BTC ownership. For more on Bitcoin itself, see learn.backpack.exchange.
Is STRC on Solana?
No. STRC is not a token on any blockchain. It is only available through traditional brokerage accounts.
Who owns Strategy?
Strategy Inc is publicly traded (Nasdaq: MSTR). Michael Saylor is Executive Chairman and co-founder; Phong Le is CEO. Founded in 1989 as MicroStrategy, rebranded February 2025.
Is STRC a safe investment?
No, not in the way government-backed instruments are safe. STRC is not FDIC insured, and its dividend depends on Strategy’s financial health, which depends on Bitcoin’s price. The $2.25 billion reserve covers ~2.5 years. Whether it fits your portfolio depends on your risk tolerance and conviction about Bitcoin’s long-term trajectory.
What is STRC from MicroStrategy?
STRC is Strategy’s (formerly MicroStrategy) variable-rate perpetual preferred stock, launched July 2025 via a $2.5 billion IPO. It pays 11.50% annual dividends (variable), distributed monthly, and is designed to trade near $100 par.
What is the STRC dividend date?
Record date: 15th of each month (5:00 p.m. NYC time). Payout: last calendar day of the month. Ex-dividend date falls a few business days before the record date. April 2026: record April 15, payout April 30.
The Bottom Line
STRC is a preferred stock engineered to function as a high-yield Bitcoin accumulation vehicle. At 11.50% annualized and paid monthly, the yield is among the highest in listed preferred equity. But it is sustained by a company whose balance sheet is concentrated in a single volatile digital asset, not by diversified cash flows or government guarantees. If you are bullish on Bitcoin and comfortable with the structural risks, STRC offers a differentiated income play. If not, conventional alternatives remain safer.
Explore more crypto and trading guides at learn.backpack.exchange.
Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency and related instruments carry inherent risks, including loss of principal. Do your own research and consult a qualified advisor before investing.
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