How Strategy's ATM program funds STRC dividends

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.

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.

Historically, Strategy responded by raising 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 entered and the price recovered, the natural market equilibrium reasserted itself. That is what happened from mid-November 2025 to early January 2026: STRC fell to roughly $92, ATM issuance slowed dramatically, Strategy raised the rate several times, and by January 7, 2026 STRC reclaimed $100 and issuance resumed.

The 2026 episode has played out differently, and this is the most important update to this article. STRC has traded below par since roughly June 2026 and has not closed back at $100. Strategy has not raised the rate. On July 31, 2026 it said the opposite: management does not intend to recommend a change from the current 12.00% rate until STRC demonstrates sustained trading at or near its $100 stated amount. STRC ATM issuance has been zero for weeks, with the full $17.51 billion of capacity sitting unused as of August 9, 2026.

The flow has reversed. Rather than selling STRC to buy bitcoin, Strategy is selling class A common stock and bitcoin to buy STRC back. Under the $1.0 billion Digital Credit Securities Repurchase Program announced June 29, 2026, it repurchased 912,143 STRC shares for $81.2 million in the week ended August 2, 2026 and 1,152,020 shares for $108.6 million in the week ended August 9, roughly $89 and $94 a share against a $100 stated amount, with $785.2 million of the program remaining. Buying below par is accretive in exactly the way issuing below par is dilutive: every share retired at $92 extinguishes a $12-a-year obligation that was priced on $100.