Frequently Asked Questions

STRC is a preferred stock issued by Strategy, Inc. (formerly MicroStrategy) that trades on the Nasdaq. It pays monthly cash dividends at a variable rate, currently 11.50% annualized, and is designed to trade near its $100 par value. Read more

STRC is a preferred stock, which is a hybrid between common stock and a bond. Like a bond, it pays regular income (monthly dividends). Like a stock, it trades on an exchange and its price can fluctuate. It does not have a maturity date, which is why it is called "perpetual."

Each share costs approximately $100 (the par value). You need enough to buy at least one share. Some brokerages may allow fractional shares, which would allow smaller investments.

Yes. STRC is listed on the Nasdaq and is available on most major brokerage platforms including Fidelity, Schwab, Vanguard, Interactive Brokers, and Robinhood. Step-by-step guide

STRC can be held in traditional IRAs, Roth IRAs, and most brokerage-based retirement accounts. However, not all 401(k) plans allow individual stock purchases. Check with your plan administrator. The return-of-capital tax treatment may have different implications in tax-advantaged accounts.

STRC has a different risk profile than a savings account, CD, or U.S. Treasury. It is not FDIC insured, your principal is not guaranteed, and the dividend rate can change. The higher yield reflects these additional risks. Full risk breakdown

No. STRC is a preferred stock, not a bank deposit. It is not protected by FDIC insurance. You could lose part or all of your investment.

Yes. The share price can fluctuate. STRC has traded as low as $88 per share since its launch. If you sell when the price is below what you paid, you will realize a loss. The dividend rate can also be reduced, which would lower your income.

Strategy's financial health is closely tied to bitcoin. A severe bitcoin decline would stress Strategy's balance sheet, potentially affecting its ability to pay dividends and maintain STRC's price near par. During the late 2025 bitcoin drawdown, STRC briefly traded below $95 before recovering. More on risks

No. STRC is a publicly traded preferred stock issued by a Nasdaq-listed company with SEC reporting obligations. However, critics have noted that the dividend payments are funded primarily by new capital raises rather than operating cash flow, which means continued investor demand is important for sustaining the dividend. This is a legitimate structural concern worth understanding. How STRC pays its yield How the ATM program works

Monthly. Dividends are paid on the last business day of each month to shareholders of record (typically around the 14th-15th of the month).

You will receive your first dividend at the end of the month, provided you purchased shares before that month's ex-dividend date. If you buy after the ex-dividend date, your first payment will be the following month.

Strategy sets the rate monthly using a rules-based framework tied to STRC's trading price relative to its $100 par value. If STRC trades below par, the rate increases. If it trades at or above par, the rate holds steady or may decrease. The framework is described in Strategy's SEC filings and earnings reports. Dividend details Complete guide to variable rate preferreds

STRC dividends have been classified as return of capital (ROC), meaning they are not treated as ordinary income when received. Instead, they reduce your cost basis in the shares, potentially resulting in a larger capital gain when you sell. Consult a tax professional for guidance specific to your situation. Tax treatment details

Most brokerages offer dividend reinvestment plans (DRIP) that will automatically use your STRC dividends to purchase additional shares. Check with your brokerage to enable this feature.

STRC is a Variable Rate Series A Perpetual Stretch Preferred Stock issued by Strategy, Inc. (Nasdaq: MSTR). It is cumulative, meaning unpaid dividends accrue. It has no stated maturity. The dividend rate is variable and adjusted monthly at the board's discretion.

STRC sits below Strategy's senior convertible notes (~$8.2B) and STRF preferred, and above STRK, STRD preferred, and MSTR common equity. Capital stack diagram

$100 per share (the stated amount), plus any accrued and unpaid dividends. In a liquidation event, STRC holders have priority over STRK, STRD, and common equity holders but are junior to debt holders and STRF holders.

Yes. Strategy has the option to redeem STRC shares at $101 per share (par plus $1), subject to certain conditions described in the prospectus.

Strategy has issued multiple preferred securities, each with different terms. STRF (10% fixed, senior, quarterly) is higher in the capital stack. STRK (8% convertible, quarterly) can convert to MSTR common shares. STRD (10% fixed, junior, quarterly) is lower in the capital stack. STRC (variable rate, monthly) sits between STRF and STRK and is the only one with a variable rate and monthly payments.

As of March 2026, STRC's 30-day volatility is approximately 2.2%, which is significantly lower than MSTR common stock (~80%), bitcoin (~53%), gold (~33%), and the S&P 500 (~12%). This low volatility is by design, as the variable dividend mechanism is intended to keep the share price stable near par. Try the stress test

Yes. STRC trades on the Nasdaq during regular market hours (9:30 AM to 4:00 PM ET, Monday through Friday). You can sell your shares like any other stock. Average daily trading volume is approximately $150-400 million, so liquidity is strong.

U.S. equities settle on a T+1 basis, meaning the cash from a sale is typically available in your brokerage account the next business day.

No. There is no early withdrawal penalty like with a CD. However, if the share price is below what you paid, you will sell at a loss.