Strategy’s STRC, also called Stretch, is a Nasdaq-listed perpetual preferred stock with a variable dividend rate. Strategy says its annualized rate is reviewed monthly; its October 2026 product page lists 12% on a $100 stated amount for record dates beginning that month. That rate is not guaranteed: the board controls the rate and must declare dividends. STRC is an investment security—not a bond, bank deposit, or Bitcoin-backed claim.
What is Strategy STRC?
STRC is Strategy Inc.’s Variable Rate Series A Perpetual Stretch Preferred Stock. Investors can trade it on Nasdaq through brokerage platforms, according to Strategy’s STRC page. “Perpetual” means it has no stated maturity date like a conventional bond; it does not mean the investment is permanent or that investors are assured a return. The specific legal rights and terms are set out in the current offering documents.
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As preferred stock, STRC is an equity security issued by the company. It is not a loan to Strategy, a bank account, or a money-market fund. Its dividend is subject to board declaration, and its market value can rise or fall.
How does STRC’s variable dividend work?
Strategy evaluates STRC’s dividend rate monthly and may change it. The company’s October 2026 product page states an annualized rate of 12% for record dates beginning in October, calculated on a $100 stated amount. Strategy cautions that the rate can change and may be significantly lower; payment is not guaranteed. Check the current STRC page for the rate applicable to a particular period.
The 12% figure is an annualized rate applied to the stated amount, not a promise that an investor will earn 12% on the price paid. If the market price differs from $100, the investor’s yield based on that price will differ too. The $100 stated amount is not a floor, a guaranteed trading price, or a promise that shares can be redeemed for $100.
Why does Strategy adjust the rate?
Strategy says it adjusts the rate to encourage trading around $100 and help reduce price volatility. Its July 2026 policy announcement says management would recommend maintaining a 12% annualized rate until STRC demonstrated sustained, healthy trading near $100. That was a changeable policy intention—not a contractual commitment. The board determines the rate, and dividends remain subject to declaration. Strategy says its rate-setting 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 factors describe the issuer’s stated process; they do not ensure a particular rate or share price. Read Strategy’s policy announcement.
How often does STRC pay dividends?
After shareholders approved a change announced June 8, 2026, STRC’s record dates are the 15th and 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. Strategy described twice-monthly payments as intended to support price stability, liquidity, and faster reinvestment; those are the issuer’s aims, not verified outcomes. See the approval announcement.
Strategy’s published schedule showed a 12.00% rate and $0.50 per share for each semi-monthly period from July through September 2026. For example, its September 2026 #2 entry listed a September 30 record date and an October 15 payout date. Those are dated scheduled figures, not a commitment to future payments. Consult Strategy’s dividend schedule for current dates and amounts.
Is STRC’s 12% dividend guaranteed?
No. Strategy says dividends are subject to declaration, and the board can change the variable rate. The October 2026 stated rate is not a contractual guarantee of future income, and a scheduled payment is not assured until declared under the applicable terms. A buyer should not treat the annualized rate as a fixed return.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Is STRC backed by Bitcoin?
No. Strategy says its preferred securities are not collateralized by the company’s Bitcoin holdings. It describes STRC as having a preferred claim on residual company assets, but that general description does not establish the complete liquidation waterfall or priority relative to every debt and equity class. Those details should be checked in the current prospectus and governing documents before drawing legal conclusions.
What are the main risks and limits?
- Dividend and rate risk: The board may not declare a dividend, and the variable rate may be reduced, including to a level significantly below the current stated rate.
- Market-price and yield risk: Strategy’s effort to encourage trading near $100 does not guarantee that price. A market price above or below the stated amount changes the yield an investor receives relative to the purchase price and can result in a loss if shares are sold for less than they cost.
- Issuer and capital-structure risk: STRC depends on Strategy’s financial condition and the rights defined by its offering documents. It is not secured by Bitcoin, and the broad description of a preferred claim does not substitute for reviewing its legal priority.
- Liquidity and volatility risk: Strategy does not guarantee liquidity, returns, or future performance. The ability to sell at a particular price or time is not assured.
- No deposit protections: Strategy says STRC is not a bank deposit and is not FDIC-insured. It does not have the same protections as deposits, money-market funds, or U.S. Treasury securities.
What to compare before buying a preferred stock
STRC’s rate and payment schedule are only part of the decision. For a comparison with another preferred security, review the terms that determine income, price behavior, and what happens if the issuer encounters financial trouble.
Quick Recap
- Whether the dividend is fixed or variable, and how often the rate can reset.
- Payment frequency and whether each dividend requires a board declaration.
- Market price compared with stated or liquidation value, and applicable redemption terms.
- The issuer’s credit and capital structure, including the security’s precise priority under its prospectus.
- Trading liquidity and price volatility.
- Whether the security is collateralized, and what assets, if any, secure it.
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