Strategy's STRK and STRC Preferred Shares Explained
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- Strategy holds over 761,000 Bitcoin (≈3.6% of total supply) and is led by Michael Saylor.
- Strategy raises cash for Bitcoin purchases primarily by selling its Nasdaq‑listed common stock MSTR, leveraging accretive dilution when its mNAV exceeds 1.0.
- STRK (launched Jan 2025) is a convertible preferred share with an 8% annual cumulative dividend and a 10:1 conversion ratio to MSTR.
- STRC (launched July 2025) is a variable‑rate preferred share whose monthly dividend is adjusted in 0.25% increments to keep its price near $100, currently yielding ~11.5% and paying cumulative dividends.
- STRD (launched June 2025) is a junior preferred share offering a non‑cumulative 10% annual dividend based on a $100 par value.
Why it matters: Investors in Strategy’s common stock benefit from the company’s ability to buy more Bitcoin without diluting existing holdings, thanks to senior preferred shares that raise cash without harming BTC‑per‑share. However, STRC’s variable dividend and the cumulative obligations of STRK and STRF impose cash‑flow strain that could affect dividend reliability.
