STRC is Strategy’s perpetual preferred stock. Its dividend is variable and cumulative, calculated on a $100 stated amount, and payable in cash only when declared and legally available. Strategy can redeem shares under the security’s terms, but holders do not have a general right to cash out on demand. The STRC materials reviewed do not describe a routine right to convert shares into Strategy common stock.
How STRC dividends work
Strategy describes STRC dividends as cumulative, variable-rate dividends that accrue on a $100 stated amount per share. They are payable in cash only when, as and if declared by Strategy’s board or an authorized committee, and only from legally available funds. Strategy’s July 25, 2025 offering announcement says unpaid regular dividends accrue under the terms and may accrue compounded dividends. Cumulative accrual does not guarantee that a dividend will be declared or paid on a particular date.
For record dates beginning in October 2026, Strategy’s STRC investor information lists a 12.00% annualized variable dividend rate on the $100 stated amount. Strategy says it may adjust the rate monthly, that it may become significantly lower, and that the stated rate does not indicate a future rate or guarantee a cash dividend. The annualized rate is not the same as an investor’s effective yield or total return: those depend, among other things, on the price paid for shares and whether dividends are declared and paid.
Where to check actual payments
Strategy’s dividend history lists past periods, rates, record dates, payout dates and per-share payments. These are historical payments, not promises of future ones. The page says expected dates are subject to board declaration; if a payout date falls on a non-business day, payment moves to the next business day.
When STRC pays dividends
The announced semi-monthly schedule
In a June 8, 2026 release, Strategy said shareholders approved changing STRC from monthly to semi-monthly dividend record and payment dates. The described schedule uses record dates on the 15th and last day of each month, with payment on the subsequent record date, subject to board declaration. Strategy President and CEO Phong Le said the change was designed to support price stability, liquidity, demand and faster reinvestment; those stated objectives are not guaranteed market outcomes. See Strategy’s announcement.
Daily dividends were discussed as a proposal
A September 29, 2026 Strategy article discusses a proposal for daily dividends on U.S.-listed preferred securities. It says that, if approved and adopted, dividends would accrue each calendar day, including weekends and holidays, and be payable on the next business day when declared. That conditional discussion does not establish that daily dividends have taken effect for STRC. For the operative schedule, check the current investor information and dividend history rather than treating the proposal as an implemented change. Read Strategy’s proposal article.
Can Strategy redeem STRC?
Yes. Under the terms described in Strategy’s July 2025 offering announcement, Strategy may elect to redeem all or eligible whole-number portions of STRC on or after listing. The ordinary redemption price is $101 per share—or a higher amount Strategy chooses—plus accumulated and unpaid regular dividends through and including the redemption date. A partial redemption is restricted: when notice is given, at least $250 million in aggregate stated amount must remain outstanding and not be called for redemption.
The announcement also describes separate clean-up and tax redemptions, each for all STRC shares rather than a partial amount. A clean-up redemption is available if the outstanding share count falls below 25% of the shares originally issued across offerings. These provisions use the stated liquidation preference as of the specified date plus accumulated and unpaid dividends through the redemption date. The detailed conditions are in the governing security documents, which may be amended; consult the latest documents for a current decision.
Can a holder demand redemption?
Not as a general on-demand right. The issuer’s redemption option is Strategy’s right, not a holder’s ability to require payment of $100 or the current market price whenever desired. STRC does, however, include a conditional holder right to require repurchase of some or all shares after an event that qualifies as a “fundamental change,” subject to the instrument’s limitations. The described cash repurchase price is the $100 stated amount plus accumulated and unpaid regular dividends through the fundamental-change repurchase date. The offering announcement contains the relevant terms.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Can STRC be converted into Strategy common stock?
The STRC offering announcement and current investor information reviewed describe dividend, redemption and fundamental-change repurchase terms, but do not describe a routine holder right to convert STRC into Strategy common stock. Do not assume conversion terms for Strategy’s convertible notes or another preferred series apply to STRC. For a transaction-specific legal answer, consult STRC’s current certificate of designations and any amendments.
What STRC’s terms mean for risk
Strategy says STRC is not collateralized by its bitcoin. Holders have a preferred claim only on residual company assets. The security is not a bank deposit, is not FDIC-insured, and does not carry the protections of bank accounts, money-market funds or Treasury securities. Strategy cautions that dividends, liquidity, returns and future performance are not guaranteed; its investor information states, “There is no guarantee for STRC of returns, liquidity, or future performance.” See Strategy’s STRC investor information and risk disclosures.
When comparing STRC with cash products or other preferred securities, distinguish the features that affect both income and access to capital:
Quick Recap
- Income: STRC’s dividend rate is variable, not a fixed rate, and payment depends on declaration and legally available funds.
- Redemption and exit: Strategy has issuer redemption rights; holders have a limited fundamental-change repurchase right, not a general on-demand put.
- Conversion: The STRC materials reviewed do not describe routine conversion into common stock.
- Principal protection: STRC is neither FDIC-insured nor collateralized by Strategy’s bitcoin.
- Market access: A brokerage listing does not make the security a cash equivalent or remove market-price, liquidity or issuer-payment risk.
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