TL;DR: STRC is Strategy’s (MicroStrategy’s) new, exchange‑listed variable‑rate, perpetual preferred stock built to deliver monthly cash dividends while giving investors a low‑volatility way to tap a bitcoin‑powered balance sheet. It launched in a $2.521B IPO and now has a $4.2B at‑the‑market program behind it. Think of it as a yield engine designed to trade near $100 par because the board can reset the rate each month.
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What exactly is STRC?
STRC stands for Variable Rate Series A Perpetual “Stretch” Preferred Stock issued by MicroStrategy Incorporated d/b/a Strategy™. It’s perpetual (no maturity), cumulative (missed dividends accrue), pays monthly, and the dividend rate can be adjusted each month by Strategy’s board with guardrails spelled out in the certificate of designations. Initial guidance: 9% per annum on a $100 stated amount, paid monthly.
Design goal: keep STRC trading around $100 by raising or lowering the monthly rate (within limits) so the market price hugs par. That’s in the official filing—not marketing copy.
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The launch that turned heads
• IPO size: Strategy closed a $2.521 billion STRC IPO on July 29, 2025—one of the year’s standout U.S. listings.
• Follow‑on firepower: Days later, the company set up a $4.2 billion at‑the‑market (ATM) program to issue additional STRC shares over time.
• Public market status: The offering was priced via Business Wire on July 25, 2025 with settlement slated for July 29; STRC is an exchange‑listed preferred security designed for monthly income.
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How STRC is built (in plain English)
• Par & price target: $100 par value; board calibrates the monthly rate to anchor trading near $100.
• Dividends: Monthly, in cash, and cumulative if unpaid.
• Ranking: Senior to common (and above STRK and STRD) but junior to STRF and to the company’s debt. Translation: in Strategy’s capital stack, STRC sits above equity but below certain preferreds and creditors.
• Redemption features: Strategy can call STRC at $101 + accrued dividends (or more, if pre‑announced), and has “clean‑up” and tax redemption rights under defined conditions.
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Why investors are paying attention (the benefits)
1. Monthly income with a shock absorber
Because the board can reset the rate monthly, STRC has a built‑in mechanism to keep price near par. That’s different from fixed‑coupon preferreds that can drift far from $25 or $100 when rates move.
2. Bitcoin‑powered treasury, without buying bitcoin directly
Strategy is the world’s best‑known bitcoin treasury company. STRC’s proceeds help finance that strategy; holders get cash yield exposure to a bitcoin‑anchored balance sheet without holding BTC. (The IPO scale and ATM program underscore the balance‑sheet approach.)
3. Institution‑friendly format
An exchange‑listed, perpetual preferred with monthly cash dividends slots neatly into many income mandates and “cash‑plus” sleeves—especially for allocators seeking alternatives to money markets and ultra‑short bonds. (Strategy framed STRC as a low‑volatility, income‑focused instrument.)
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Why it matters (the beyond)
• Scale creates an on‑ramp: A $2.5B IPO followed by a $4.2B ATM signals more than a one‑off security; it hints at a platform for yield instruments tied to a crypto‑heavy corporate treasury.
• A new playbook for corporate bitcoin: STRC sits alongside Strategy’s other preferreds (STRK, STRD, STRF) with different terms and seniority, suggesting a modular capital‑markets toolkit that traditional issuers haven’t used for digital‑asset treasuries.
• Market education: Coverage from mainstream finance outlets framed STRC as a bitcoin‑backed alternative to T‑bills with monthly dividends—a narrative that could broaden adoption among yield‑seeking investors who don’t want BTC volatility on their balance sheets.
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Where STRC fits (three practical use cases)
Not investment advice—just ways allocators might think about a variable‑rate, monthly payer:
1. Cash‑plus sleeve: For teams seeking more yield than money markets with a board‑adjusted rate trying to keep price near par. (Understand the issuer and bitcoin exposure first.)
2. Barbell with BTC: Pair core BTC (for convexity) with STRC income (for carry) to smooth the ride. The company’s treasury linkage is the connective tissue.
3. Ladder across Strategy preferreds: Mix seniority and coupons across STRF/STRC/STRD/STRK to express a view on yield vs. priority in the stack, with STRC positioned above common but below STRF.
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Risks & realities (read these twice)
• Issuer risk: You’re taking Strategy (MicroStrategy) credit/structure risk—not the U.S. government. It’s not a bank deposit, not FDIC‑insured.
• Bitcoin sensitivity: While STRC isn’t BTC itself, the treasury strategy is BTC‑centric. That can affect dividends, funding costs, and market appetite.
• Call risk: If rate markets fall or funding needs change, Strategy can redeem at $101 + accrued (or more if disclosed). That can cap upside.
• Rate reset risk: The board sets the monthly rate within constraints; your forward yield can change. Read the fine print.
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The headline moments (to share with your group chat)
• $2.521B IPO closed July 29, 2025—a landmark for a preferred tied to a bitcoin‑heavy corporate treasury.
• $4.2B ATM established July 31, 2025—ammo for ongoing issuance and liquidity.
• Monthly, adjustable dividends targeting par stability—a design uncommon in listed preferreds.
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Quick FAQ
Is STRC fixed or floating?
It’s variable‑rate, adjusted monthly by the board (with guardrails).
How often do I get paid?
Monthly, when and if declared, and missed payments accrue.
What happens if markets change?
The board can raise or lower the monthly rate to help keep shares near $100. Strategy also has call rights at $101 + accrued (or more if announced).
Where did the money go?
Proceeds are for general corporate purposes, including bitcoin acquisition and working capital—consistent with Strategy’s treasury mandate.
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The punchline
STRC isn’t just another preferred; it’s a financial interface between TradFi yield and a bitcoin‑native balance sheet. By fusing a monthly, adjustable cash dividend with public‑market scale, Strategy created something that income investors and crypto‑curious allocators can both recognize—and potentially use. Created by Strategy. Aimed at the gap between cash and conviction.
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Disclosures: This post is for information only, not investment, tax, or legal advice. Read the prospectus, 8‑K, and certificate of designations before making decisions. The key governing terms are published in Strategy/MicroStrategy’s SEC filings and press releases.