How Does STRC Work?

STRC ("Stretch Preferred") is Strategy's variable-rate preferred stock. It works as a Bitcoin-funding engine wrapped in a dividend-paying security — here's the mechanism in plain terms.

How does STRC pay its dividend?

STRC's dividend is calculated on its $100 par value, not on the market price, and the rate is variable — Strategy reviews it monthly and sets it at its discretion. It most recently moved to 12.00% per annum effective July 1, 2026. Since that date it pays semi-monthly: two record dates each month, the 15th and the last day. Because the payout is on par, a buyer purchasing below $100 earns an effective yield above the stated rate — stated rate × par ÷ price. You can run that math on the effective yield calculator.

How does STRC fund Bitcoin?

Strategy raises money by selling new STRC shares through an at-the-market (ATM) offering — issuing shares straight into the open market at prevailing prices whenever STRC trades at or above its $100 par. The proceeds, net of a ~2.5% agent fee, go into Bitcoin for the treasury and, since mid-2026, into a USD cash reserve that backs the dividend. Every week's issuance and purchase is disclosed in an SEC 8-K on EDGAR.

What coupon does STRC pay now?

Because the rate is adjustable, any fixed number dates quickly. As of the most recent reset it is 12.00%, but the authoritative, current figure — plus the live effective yield at today's price — is always on the live tracker. See the full rate history for every reset since launch.

Is STRC the same as Strategy's other preferreds?

No. STRC is the variable-rate member of Strategy's "Digital Credit" family; STRF, STRK, and STRD carry fixed rates. The side-by-side comparison breaks down the differences.