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. From November 1, 2026 it pays daily: every calendar day is a record date, paid the next business 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 STRC calculator.

Daily dividends, approved. At a special meeting on October 28, 2026, Strategy's common stockholders approved amendments moving all four of its preferred stocks to daily dividends (in Strategy's words, "based on preliminary voting results, the requisite vote was obtained"). From November 1, 2026, every calendar day (weekends and holidays included) is a STRC record date, with each declared dividend paid the next business day. Dividends whose record dates fall on a weekend or holiday share the preceding trading day as their ex-date and are paid together: Friday, Saturday and Sunday dividends all pay on Monday. STRF, STRK and STRD follow from January 1, 2027. The change does not alter any dividend rate or the total paid: the same annual dividend arrives in smaller, more frequent payments, and dividends are still paid only when declared by the Board. The schedule takes effect subject to the filing of the amended certificates of designations. Sources: Strategy's 8-K (SEC, October 28, 2026) and definitive proxy statement (SEC, October 5, 2026).

How often does STRC pay dividends?

Daily, from November 1, 2026. Every calendar day, weekends and holidays included, is a record date, and each declared dividend is paid the next business day, so Friday, Saturday and Sunday dividends land together on Monday. Stockholders approved the change on October 28, 2026. Before that STRC paid semi-monthly (July–October 2026) and, before July 2026, monthly. Daily payments don't change the annual amount, only how it's split up. STRF, STRK and STRD follow from January 1, 2027. See every change on the dividend history page.

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.