STRC vs Treasury Bonds: Which Earns You More?
How does STRC's 12% yield compare to the 1-year Treasury at 3.65%? Here is what the numbers look like.
HYSA and CD rates as of May 1, 2026. Treasury yield and S&P 500 dividend yield update automatically. Sources
Treasury (3.65%)
$152.08/mo
STRC (12%)
$500.00/mo
Difference
+$347.92/mo
What $50,000 earns you per month
+$347.92/month more with STRC
Monthly Income Comparison
| Investment | Treasury (3.65%) | STRC (12%) | Difference |
|---|---|---|---|
| $10,000.00 | $30.42/mo | $100.00/mo | +$69.58/mo |
| $25,000.00 | $76.04/mo | $250.00/mo | +$173.96/mo |
| $50,000.00 | $152.08/mo | $500.00/mo | +$347.92/mo |
| $100,000.00 | $304.17/mo | $1,000.00/mo | +$695.83/mo |
| $250,000.00 | $760.42/mo | $2,500.00/mo | +$1,739.58/mo |
Feature Comparison
| Feature | Treasuries | STRC |
|---|---|---|
| Current Yield | 3.65% | 12% |
| Payment Frequency | Semi-annual | Semi-monthly |
| Backed By | US Government | Strategy, Inc. |
| Principal Protection | Yes (if held to maturity) | No |
| Liquidity | Secondary market or hold to maturity | Sell during market hours |
| Minimum Investment | $100 (TreasuryDirect) | 1 share (~$100) |
| Tax Treatment | Federal tax, exempt from state/local | May qualify as return of capital |
| Rate Type | Fixed at purchase | Variable (monthly) |
| Maturity | 1-30 years (varies) | Perpetual (no maturity) |
Treasury Pros
- Backed by the full faith and credit of the US government
- Virtually zero default risk
- Fixed rate locked in at purchase
- Exempt from state and local taxes
- Deep, liquid secondary market
Treasury Cons
- Lower yield than STRC (3.65% vs 12%)
- Interest paid semi-annually, not monthly
- Selling before maturity may result in a loss
- Returns may barely outpace inflation
STRC Pros
- Significantly higher yield (12% vs 3.65%)
- Semi-monthly cash dividends, paid twice a month (far more frequent than treasuries)
- Potential for favorable tax treatment (return of capital)
- No maturity date, hold as long as you want
- Easy to buy and sell on Nasdaq
STRC Cons
- Not backed by the US government
- Principal can fluctuate below $100 par
- Dividend rate is variable, not fixed
- Tied to Strategy's bitcoin-focused business
- Much shorter track record than treasuries
Understanding the risk tradeoff
Treasuries are often called "risk-free," but that label only applies to default risk. A 1-year Treasury at 3.65% locks you into that rate for the full term. If rates rise after you buy, your bond loses market value before maturity. If inflation exceeds 3.65%, your real return is negative, meaning you get your dollars back but they purchase less than when you started. And when the bond matures, you face reinvestment risk: the next Treasury you buy might pay even less.
STRC approaches the problem differently. Its variable rate adjusts monthly based on market conditions, so you are never locked into a rate that the market has moved past. The tradeoff is that STRC is not backed by the U.S. government. It is backed by Strategy's $2.55 billion cash reserve and roughly $50 billion in bitcoin holdings. That is a meaningful asset base, but it carries corporate credit risk that Treasuries do not.
Put simply: Treasuries trade yield for certainty, while STRC trades certainty for yield. A Treasury buyer accepts lower income for a government guarantee. An STRC holder accepts corporate risk for substantially higher monthly payments and a rate that moves with the market. For a deeper look at STRC's structural buffers, see How Durable is STRC?
Who Is Each Best For?
Stick with Treasuries if...
- Capital preservation is your top priority
- You want a government-backed guarantee
- You prefer a fixed, predictable rate
- You are building a conservative bond ladder
Consider STRC if...
- You want higher monthly income
- You are comfortable with corporate credit risk
- You prefer twice-monthly over semi-annual payments
- You understand the risk-reward tradeoff of a higher yield