Glossary

The key terms behind Strategy's STRC (Stretch Preferred) stock and the Bitcoin treasury it funds, in plain English.

STRC — Strategy's perpetual preferred stock (ticker: STRC), "Stretch Preferred." $100 stated amount, variable dividend — currently 12.00% per annum.

ATM (at-the-market) — A mechanism for issuing new STRC shares directly into the open market at prevailing prices, rather than in a single block.

8-K — An SEC filing Strategy uses to disclose material events: weekly Bitcoin purchases and sales, dividend-rate changes, total holdings, and USD Reserve figures.

Par / stated amount — The $100 face value of STRC. ATM issuance only happens at or above par, and dividends are paid on par — not the market price.

Capture rate — The fraction of STRC's above-par ATM dollar volume Strategy converts to Bitcoin each week, derived from the last four confirmed 8-K reconciliations.

Stated yield — STRC's variable annual dividend rate, set on the $100 par and adjusted by Strategy at its discretion. Currently 12.00%.

Effective yield — The yield a buyer actually earns at the current price: stated rate × (par ÷ price). Higher than stated when STRC trades below $100 par.

Semi-monthly — STRC's dividend payment cadence since July 1, 2026 — two record dates per month (the 15th and month-end). The rate itself is still evaluated monthly.

USD Reserve — A cash reserve Strategy holds to fund preferred-stock distributions (including STRC dividends) and debt interest, disclosed in its 8-K filings.

BTC Monetization Program — A Board-authorized program letting Strategy sell a bounded amount of Bitcoin to replenish the USD Reserve — the backstop behind dividend coverage.

Digital Credit — Strategy's framework of preferred-stock instruments (STRC, STRF, STRK, STRD) used to raise capital for its Bitcoin treasury.

For a fuller explanation of STRC itself, see what is STRC; for how the tracker's numbers are derived, see the methodology.