Saylor Frames STRC as Income, Lower-Volatility Tier

Michael Saylor outlined STRC as an income-oriented tier within MicroStrategy’s bitcoin financing, noting the perpetual preferred stock totals $8.5 billion and carries an 11.50% annual dividend.

STRC pays 11.50% annually in monthly cash distributions. MicroStrategy adjusts the dividend rate each month to encourage trading near the $100 par value and to limit price swings. The company describes STRC as a short-duration credit structure meant to reduce sensitivity to interest-rate and duration risk.

MicroStrategy reported STRC reached $8.5 billion in size within nine months of issuance. The company’s public dashboard shows holdings of 818,334 BTC, about 3.9% of bitcoin’s 21 million supply, and Saylor has pointed to those BTC and USD reserves as backing for STRC.

MicroStrategy has proposed changing STRC’s payment cadence to twice monthly, on the 15th and at the end of the month, while keeping the same annual dividend. Each installment would be smaller but more frequent. If approved, the change would use a June 30 record date with a July 15 payment to begin the new schedule. MicroStrategy cited Nasdaq timing rules as a constraint on payment frequency.

Saylor explained why the company structured STRC as preferred equity rather than debt, writing: “We structured it as preferred equity rather than debt to make it more scalable, durable, global, and useful.”

He described the security as credit-focused, writing: “STRC is credit engineered for income, stability, liquidity, and principal protection.” Saylor also used an analogy to differentiate exposures, comparing STRC to a passenger jet, bitcoin to a fighter jet and MSTR equity to a rocket ship.

MicroStrategy positions STRC as the credit layer inside its bitcoin-centered capital structure: holders receive fixed-income-style distributions while the company retains direct bitcoin exposure on its corporate balance sheet and through MSTR equity. The preferred stock’s adjustable yields, perpetual structure and near-par trading target reflect the company’s stated objective of offering an income product with lower volatility than direct equity or spot bitcoin holdings.

MicroStrategy launched STRC as part of financing tied to its bitcoin purchases and treasury operations. The company says the preferred stock expands its options for raising capital while providing an instrument focused on cash distributions rather than crypto price appreciation.