Strategy’s STRC, also called Stretch, is a Nasdaq-listed perpetual preferred stock with a variable dividend that the company’s board can change and must declare. Strategy stated an annualized rate of 12% for record dates beginning in October 2026, based on a $100 stated amount, but neither that rate nor any dividend payment is guaranteed. STRC is not a bond, bank deposit, or Bitcoin-collateralized investment.
What is Strategy STRC?
STRC is Strategy Inc.’s Variable Rate Series A Perpetual Stretch Preferred Stock. It trades on Nasdaq under the ticker STRC, and Strategy says investors can access it through most major brokerage platforms. “Perpetual” means it has no stated maturity date; it is not a loan that automatically comes due on a specified date.
As preferred stock, STRC is an equity security issued by the company, not a deposit account or a Treasury security. Its dividend is governed by company terms and board action, rather than being a contractual bond coupon. The full legal terms—including detailed provisions for redemption, liquidation priority, and dividend seniority—should be checked in the current prospectus and offering documents.
How does STRC’s variable dividend work?
The rate is reviewed monthly
Strategy says it evaluates STRC’s dividend rate monthly, and the board determines the rate. The company’s October 2026 STRC page states an annualized rate of 12% for record dates beginning that month, calculated on the $100 stated amount. Strategy also says the rate can change and may be significantly lower. See Strategy’s STRC page.
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Strategy has described the adjustment mechanism as a way to encourage trading near $100 and reduce price volatility. Its stated considerations include STRC trading levels, market yields, credit spreads, Bitcoin price and volatility, USD Reserve coverage, capital-market conditions, and the company’s overall capital structure. These are the issuer’s rationale and inputs; they do not ensure a particular trading price or future rate.
12% is not guaranteed
The rate is not a promise that investors will receive a fixed return. Dividends are subject to board declaration and applicable conditions, and Strategy says they are not guaranteed. On July 27, 2026, the company said management would recommend keeping the annualized rate at 12% until STRC showed sustained, healthy trading near $100. That was a changeable policy intention, not a contractual commitment. Read Strategy’s dividend-policy announcement.
How often does STRC pay dividends?
After shareholder approval announced June 8, 2026, STRC’s record dates are the 15th and the final day of each month, with payments on the subsequent record date. Payments scheduled for a non-business day are made on the next business day. The schedule is still subject to board declaration. See Strategy’s announcement of semi-monthly payments.
Strategy’s published schedule listed a 12.00% annualized rate and $0.50 per share for each semi-monthly period shown from July through September 2026. For example, its September 2026 #2 entry gives a September 30 record date and an October 15 payout date. These are dated schedule figures, not assurances of future declarations or payments. Check the current STRC dividend schedule for changes.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchWhat does the $100 stated amount mean?
The $100 figure is the stated amount used to calculate the dividend rate; it is not a guarantee that STRC will trade for $100. Strategy says it adjusts the rate to encourage trading around that level, but market price can move above or below it. As a result, an investor’s effective yield based on the price paid can differ from the stated annualized rate. A dividend calculated using the stated amount does not by itself determine the return on an investor’s purchase price.
Is STRC backed by Bitcoin?
No. Strategy says its preferred securities are not collateralized by its Bitcoin holdings. The company describes preferred holders as having a claim on residual company assets, but that does not mean Bitcoin is pledged as security for STRC or that holders have a direct claim to particular Bitcoin holdings. The precise priority of STRC relative to debt and other securities depends on the operative legal documents; the issuer’s overview alone does not establish the complete liquidation waterfall.
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What are the main risks and limits?
- Dividend risk: The board can change the variable rate, and payments depend on declaration. A current stated rate is not guaranteed income.
- Market-price risk: STRC can trade away from its $100 stated amount, so an investor may lose money even if a dividend is declared.
- Issuer risk: STRC depends on Strategy’s financial condition and capital structure. The issuer’s rate-setting factors do not remove the risk that circumstances or market conditions change.
- No deposit or cash protections: Strategy says STRC is not a bank deposit, is not FDIC-insured, and does not have the same protections as deposits, money-market funds, or Treasuries.
- Liquidity and performance uncertainty: Strategy says there is no guarantee of returns, liquidity, or future performance.
- Legal-priority uncertainty without the governing documents: Do not infer precise redemption rights, liquidation priority, or dividend seniority from the product overview. Review the current prospectus and prospectus supplement for those terms.
How to evaluate STRC before investing
Compare STRC with other preferred securities by examining the actual terms rather than relying on the headline rate. Key questions include:
- Is the dividend fixed or variable, and how often can its rate reset?
- How frequently are payments scheduled, and are they subject to declaration?
- How does the trading price compare with the stated or liquidation value, and how might that affect effective yield?
- What does the issuer’s credit and capital structure mean for the security?
- How liquid is the security, and how much price volatility can an investor tolerate?
- Is the security collateralized, and what exact priority, redemption, and dividend terms appear in its prospectus?
For STRC, the issuer identifies the monthly variable rate, semi-monthly schedule, lack of Bitcoin collateral, and risks described above. Do not treat a target trading level or policy intention as an outcome, or the stated dividend rate as a substitute for reviewing the security’s complete legal terms.
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