According to the firm, it plans to issue five million STRC shares at a face value of $100 each, pending regulatory clearance and market conditions.
STRC offers an initial annualized dividend of 9%, paid monthly and subject to board approval. While the dividend rate is variable, Strategy has capped any downward adjustment to 25 basis points per change, preserving yield stability.
This structure positions STRC as a compelling alternative to traditional money market funds, which currently offer yields of around 4.25%.
Joe Consorti, Head of Growth at Theya Bitcoin, framed the product as a deliberate play to redirect capital from traditional fixed-income vehicles into Bitcoin-backed instruments.
“Strategy’s new variable rate preferred STRC has a 9% initial yield, and is targeting money market funds. A $7.05 trillion market, about 25% of all US Treasuries, yielding just ~4.25%.”
Beyond its high payout, STRC includes redemption mechanisms tailored for both Strategy and its investors.
The company reserves the right to redeem shares at $101 plus any unpaid dividends, while investors are granted a par-value exit in the event of a “fundamental change.” These terms offer both flexibility and downside protection, enhancing the product’s appeal in uncertain market conditions.
STRC extends Strategy’s growing family of Bitcoin-linked preferred securities offerings.
“Strategy is building a ‘yield curve’ of products for varying risk appetites and return profiles..[The firm] is building multiple ‘pumps’ to extract fiat from pools of stagnant or otherwise trapped liquidity and transmute into bitcoin.”
According to him, the offerings allow investors who want yield plus indirect Bitcoin exposure to diversify away from conventional Treasuries, seek income that may outpace inflation, and express a view on digital assets without buying spot BTC outright.
