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STRC · Variable Rate Series A Perpetual Stretch Preferred Stock

Glossary · The treasury-company numbers Capitalist

Strategy’s variable-rate perpetual preferred stock, $100 stated value, built to trade at par. The dividend rate is reviewed monthly and paid in cash, and Strategy’s stated objective is a trading price of $99 to $100, with a policy of not issuing new shares below par. Holders have a claim on Strategy, not on its bitcoin: every preferred is unsecured and every dividend is subject to board declaration.

The front of the credit stack and the paper Strategy defends first. The filings report it in three numbers: USD Reserve (cash set aside for dividends), USD Duration (how many years that cash covers) and STRC BTC Credit (the spread the market charges, in basis points). When Strategy retires STRC instead of buying coin, that is the wrapper defending itself.

Coverage

All terms in the glossary · The thesis