Deep Dive
How Strategy's ATM program funds STRC dividends
The at-the-market offering is the engine behind STRC. Here's exactly how capital flows from share sales to bitcoin purchases to your monthly dividend.
The Basics
At-the-market offerings, explained simply
An at-the-market offering lets a public company sell new shares gradually into the open market at current trading prices, rather than doing a big one-time offering that dumps shares and crashes the price. Think of it like a slow drip rather than a fire hose.
Strategy has ATM programs for multiple securities: MSTR common stock, STRC, STRK, STRF, and STRD. Each program has a maximum dollar amount authorized. Strategy's brokers (called “agents”) sell shares into the market throughout the trading day when conditions are favorable, when there's enough buyer demand and the price is at or above par.
The key detail for STRC holders: Strategy generally only sells new STRC shares when the price is at or above $100 par value. When STRC dips below par, ATM issuance pauses. This prevents unlimited dilution. Demand has to exist for new supply to be created.
For a broader understanding of variable rate preferred stocks and how they work, see our definitive guide to variable rate preferreds.
Traditional Offering
Company announces X million shares at a fixed price. Price often drops on the news. All shares sold at once in a single transaction.
At-the-Market (ATM)
Shares sold gradually at market prices. No announcement of each individual sale. Only when conditions are favorable. Price impact minimized.
Follow the Money
From your brokerage to bitcoin: the complete flow
Investor buys STRC
You place a buy order through your brokerage. Some shares come from other investors (secondary market). Some are newly issued by Strategy through the ATM (primary market).
ATM proceeds to Strategy
When Strategy sells new STRC shares through the ATM, the cash (minus ~2% commission to agents) goes to Strategy's treasury.
Strategy buys Bitcoin
Strategy uses the proceeds to purchase bitcoin. These purchases are disclosed weekly in SEC 8-K filings.
Bitcoin held in treasury
The bitcoin goes onto Strategy's balance sheet. As of March 2026, Strategy holds approximately 761,068 BTC worth roughly $55 billion.
Dividends funded from reserves
STRC dividends are paid from Strategy's $2.25 billion USD cash reserve and ongoing ATM proceeds. Dividends are NOT paid from bitcoin sales.
Monthly cash to shareholders
$0.958 per share deposited into your brokerage account every month.
A common misconception is that Strategy sells bitcoin to pay dividends. This is not how it works. Dividends come from the USD cash reserve and ongoing capital raise proceeds. The bitcoin is held, not liquidated. Strategy has stated they have a policy of never selling bitcoin.
The Numbers
STRC ATM program by the numbers
$4.2B
Authorized July 2025
~$2.2B
Through STRC ATM
~$2.0B
Available capacity
~2%
To ATM agents
STRC ATM Program Capacity
of $4.2B total authorized
Recent weekly ATM activity
| Week | Shares Sold | Amount |
|---|---|---|
| Mar 2-8, 2026 | 3,776,205 shares | $377.1M |
| Jan 12-19, 2026 | 2,945,371 shares | ~$295M |
| Jan 5-11, 2026 | 1,200,000 shares | $119.1M |
Strategy discloses ATM activity weekly in SEC Form 8-K filings.
The Full Picture
STRC is one piece of a larger capital machine
Strategy doesn't rely on a single security to fund its bitcoin acquisition strategy. The company has ATM programs across five different securities, each serving a different investor profile and risk appetite. Common stock (MSTR) targets equity investors. STRC and STRK target income-seeking investors with variable rates. STRF serves those who want a fixed coupon. STRD provides yet another option.
All of these programs share a single purpose: raising capital to purchase bitcoin. The diversification across securities means Strategy can raise capital in different market conditions, tapping whichever instrument has the strongest investor demand at any given time.
All Strategy ATM Programs
Total remaining ATM capacity: ~$34.3 billion
Strategy has over $34.3B in remaining ATM capacity across all securities. This is the capital base available to continue buying bitcoin and maintaining the treasury that supports STRC dividends.
The Mechanism
Below par: why ATM issuance pauses and what it means
When STRC drops below $100, Strategy generally stops issuing new STRC shares through the ATM. Selling at a discount to par dilutes existing holders and is economically unfavorable. The company receives less than par value per share while still owing the full par-based dividend, which makes issuance below par a losing proposition.
Instead, Strategy raises the dividend rate to attract buyers and push the price back toward par. A higher yield makes STRC more attractive compared to alternatives. As buyers enter and the price recovers, the natural market equilibrium reasserts itself.
Once the price recovers to par, ATM issuance can resume. This happened in practice: STRC fell below par from mid-November to early January 2026, reaching approximately $92 at the low. During that period, STRC ATM issuance slowed dramatically. Strategy raised the rate multiple times. By January 7, 2026, STRC reclaimed $100 and ATM issuance resumed.
STRC price and rate since launch
Nov - Dec 2025
Price below par, ATM paused, rate increased
Jan 2026
Price recovers to par, ATM resumes
Sustainability
Can the ATM keep funding dividends?
Annual dividend obligation
- STRC shares outstanding~52M
- STRC annual rate$11.50/share/yr
- Total preferred obligation (all series)~$818M/yr
Funding sources
- USD reserve~$2.25B
- STRC ATM remaining~$2.0B
- Coverage3+ years
Sustainability equation
Bitcoin growth > STRC dividend rate (11.5%)
Model is self-sustaining
Bitcoin growth < STRC dividend rate (11.5%)
Reserves drawn down
Strategy's $2.25 billion USD reserve provides a buffer during periods when bitcoin underperforms the dividend cost, buying time for recovery.
For stress tests and scenario analysis, see How Durable is STRC? →
For Investors
What STRC holders should understand about the ATM
New shares don't dilute your income
Unlike common stock, where new share issuance dilutes earnings per share, STRC preferred shares each carry a fixed claim on dividends. Your $0.958/month per share does not change when Strategy issues more STRC.
ATM activity is a health signal
Active STRC ATM issuance near or above par is a positive signal. It means there's investor demand, Strategy is raising capital on favorable terms, and the model is functioning as designed.
You can track it weekly
Strategy files 8-K forms with the SEC every week disclosing exactly how many shares were sold and how much bitcoin was purchased. These are public documents available at sec.gov.
Remaining capacity matters
The ~$2.0B remaining in the STRC ATM represents years of potential issuance at current pace. When a program nears depletion, Strategy typically authorizes a new one.
Sources
- Strategy Q4 2025 Earnings (Feb 5, 2026)
- Strategy 8-K ATM updates (weekly filings)
- STRC ATM Program announcement (July 31, 2025)
- strategy.com/stretch
This article is for educational purposes only and does not constitute investment advice. STRC is a perpetual preferred stock with no maturity date. Dividends are not guaranteed and may be suspended. The share price can fall below par value and you could lose money. Past performance does not guarantee future results. Always do your own research and consult a financial advisor before making investment decisions.