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Strategy’s preferred stock STRC is supposed to trade at $100. It’s currently trading around $95. CEO Phong Le says the company has a plan for that, or at least, a couple of plans it’s considering.
Le indicated that Strategy may increase the STRC dividend rate or bolster its USD reserves to push the preferred stock back toward its par value.
What STRC is and why the discount matters
STRC, formally known as Variable Rate Series A Perpetual Stretch Preferred Stock, launched in July 2025 as one of several instruments Strategy uses to fund its Bitcoin acquisition strategy. It pays a variable dividend, currently set at 11.50% annualized, and the board can adjust that rate to keep the price anchored near $100.
Despite those hikes, STRC is still sitting about 5% below par. When a preferred stock trades below par, the effective yield for new buyers actually exceeds the stated rate. You’re paying $95 for a security that pays dividends based on a $100 face value. That math works in the buyer’s favor, but it works against Strategy’s ability to raise fresh capital at attractive terms.
The tools on the table
Le outlined two levers the company could pull. The first is straightforward: raise the dividend rate above 11.50%. The second option is increasing USD reserves backing STRC, reducing the perceived risk that it won’t be able to meet its dividend obligations.
There’s also a structural change already in motion. On June 8, 2026, stockholders approved a shift from monthly to semi-monthly dividend payments. Instead of getting paid once a month, STRC holders will now receive dividends twice a month. The idea is that more frequent payments improve liquidity and make the instrument more appealing to a broader set of investors, particularly those in yield-focused strategies across both traditional and decentralized finance.
The bigger picture for Strategy’s Bitcoin machine
Strategy, formerly known as MicroStrategy, has built an entire financial ecosystem around one core thesis: accumulate as much Bitcoin as possible using creative capital markets instruments. Collectively, the company’s various issuances have generated a notional value surpassing $10 billion dedicated to Bitcoin purchases.
What this means for investors
For current STRC holders, if you bought at par and the stock is now at $95, you’re sitting on an unrealized loss, but collecting an 11.50% annualized dividend that effectively yields even higher on your current market value.
The shift to semi-monthly dividends is worth watching closely. More frequent payments can attract algorithmic and institutional strategies that optimize for yield timing. If that brings incremental demand, it could help close the par gap without requiring a dividend hike.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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