STRC Preferred Shares Hold Steady Near $100 as Strategy’s Bitcoin-Backed Financing Model Proves Resilient in 2026
- Why Are STRC Preferred Shares Attracting Investor Attention?
- How Does Strategy’s Bitcoin-Backed Financing Model Work?
- What’s the Current Market Activity Telling Us?
- How Is Strategy Managing Its Common Stock?
- What Are the Risks and Opportunities?
- Frequently Asked Questions
Strategy’s STRC preferred shares continue to trade around $100, backed by a unique Bitcoin-collateralized financing model. The company’s recent BTC acquisitions and dividend structure reveal a high-conviction bet on Bitcoin’s long-term appreciation, with potential for significant capital gains despite an 11% dividend yield. Market data shows strong liquidity and untapped issuance capacity, while common share sales indicate ongoing capital-raising flexibility.
Why Are STRC Preferred Shares Attracting Investor Attention?
Strategy’s STRC preferred shares have become a focal point for investors seeking bitcoin exposure without direct ownership. Trading near $100, these securities last reached parity in early November 2025, generating approximately $100 million in market sales during a four-day trading period, according to company disclosures. What makes STRC particularly interesting is its dual nature – offering yield through dividends while maintaining upside potential tied to Bitcoin’s price appreciation.
How Does Strategy’s Bitcoin-Backed Financing Model Work?
Between December 29-31, 2025, Strategy executed a significant Bitcoin purchase, adding 1,287 BTC to its reserves. This brought its total Bitcoin holdings to 673,783 BTC alongside a $2.25 billion USD reserve. The timing coincided with STRC’s announcement of an 11.00% variable dividend, featuring an 11.01% effective yield and 30-day historical volatility of 12%.
The model operates simply: Strategy can sell STRC shares at an 11% yield, using proceeds to buy Bitcoin. For example, a $100,000 STRC sale finances 1 BTC purchase at $100,000, creating an $11,000 annual dividend obligation. Crucially, this structure creates asymmetric upside – if Bitcoin reaches $1 million in five years, Strategy still only owes the original $55,000 in dividends (5 years x $11,000), while the Bitcoin investment grows tenfold. After accounting for dividend payments, this scenario WOULD yield $845,000 in net capital gains.
What’s the Current Market Activity Telling Us?
Recent trading data paints an interesting picture:
- STRC’s notional value stands at $2.9587 billion
- 30-day average trading volume of $51.3 million (down 2.16%)
- Next record date: January 15, 2026
- Next payment date: January 31, 2026
- BTC rating of 6.2x
Notably, between December 29-31, no preferred shares (STRC, STRF, STRK, or STRD) were sold, leaving substantial issuance capacity:
| Security | Available Issuance |
|---|---|
| STRC | $4.0424 billion |
| STRF | $1.6193 billion |
| STRK | $20.3350 billion |
| STRD | $4.0148 billion |
How Is Strategy Managing Its Common Stock?
The company has been actively managing its Class A common shares (MSTR):
- Sold 1,255,911 shares (week of December 29-31): $195.9 million net proceeds
- Remaining availability: $11.5028 billion
- January 1-4, 2026 sales: 735,000 shares ($116.3 million raised)
- Updated availability: $11.3863 billion
This activity demonstrates Strategy’s multi-pronged approach to capital management, balancing preferred share dividends with common equity raises to fund Bitcoin acquisitions.
What Are the Risks and Opportunities?
The model hinges on Bitcoin outperforming the 11% dividend rate without corresponding increases in dividend size as Bitcoin appreciates. While the potential upside is substantial (as shown in the $1 million Bitcoin scenario), investors should consider:
- Bitcoin’s volatility could challenge the 11% hurdle rate
- Dividend obligations remain fixed regardless of Bitcoin’s performance
- The structure avoids initial dilution but creates ongoing yield obligations
As noted by BTCC analysts, “The math becomes compelling if Bitcoin maintains its historical appreciation trends, but investors must have conviction in both Strategy’s execution and Bitcoin’s long-term trajectory.”
Frequently Asked Questions
What makes STRC shares different from direct Bitcoin ownership?
STRC offers yield through dividends while maintaining bitcoin price exposure, creating a hybrid investment vehicle that appeals to income-focused investors seeking crypto exposure.
How does the 11% dividend compare to traditional fixed income?
The yield is significantly higher than most traditional fixed income products, but carries different risks tied to Bitcoin’s performance and Strategy’s ability to maintain dividend payments.
What happens if Bitcoin’s price declines?
The dividend obligation remains, potentially creating pressure if Bitcoin’s value decreases significantly. However, Strategy maintains substantial USD reserves as a buffer.
Can the dividend rate change?
The current structure features a variable dividend, but the 11% yield has remained consistent recently. Any changes would be announced through official company channels.
How liquid is the STRC market?
With $51.3 million average daily volume, the market appears liquid, though investors should be aware of potential volatility around dividend dates.
