What Is STRC? Stretch 11.5% Yield Preferred Stock Explained
What is STRC?
STRC, also known as Stretch, is a high-yield preferred stock created by Michael Saylor and Strategy. The stock was designed to provide investors with monthly dividend income while helping fund the company’s aggressive bitcoin acquisition strategy.
Unlike common shares such as MSTR, STRC focuses more on income and stability rather than maximum upside exposure to bitcoin. The preferred shares typically trade near their $100 par value and currently offer an 11.5% annual yield, making them attractive to income-focused investors seeking bitcoin-related exposure.
How STRC Works
STRC raises capital for Strategy through the sale of preferred shares that pay investors a monthly cash dividend. The company then uses much of the proceeds to purchase additional bitcoin for its corporate treasury.
Unlike MSTR common stock, STRC is designed primarily as an income-focused investment. The shares generally trade near their $100 par value and currently offer an 11.5% annual yield paid monthly.
STRC also has a monthly ex-dividend date, meaning investors must own shares before that cutoff to receive the upcoming payout. Dividend payments are typically distributed near the end of each month. However, like many preferred stocks, the company may suspend dividend payments under certain conditions.
STRC Dividend History
Why Strategy Created STRC?
Strategy created STRC as a way to raise capital without relying solely on issuing new common shares.
Instead of diluting existing shareholders directly, the company can issue preferred shares that:
- pay a dividend to investors
- attract income-focused capital
- help fund additional Bitcoin purchases
This approach supports Strategy’s long-term goal of increasing its Bitcoin holdings.
How STRC Works
STRC is structured as a preferred share. That means it sits between debt and common stock in the company’s capital structure.
Key characteristics may include:
• fixed dividend payments
• priority over common shareholders in dividends
• no voting rights in most cases
• potential conversion or redemption features depending on the offering terms
Investors who buy STRC typically seek income from dividends, while Strategy receives capital that can be deployed into its treasury strategy.
