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FIGR_HELOC $1.03 Bitcoin · Explained
Strategy's STRC preferred stock returns to $100 after daily dividend shift
The bitcoin treasury company's Stretch preferred touched par for the first time since May, reopening a possible path to new share sales.
Key takeaways
- Back at par. STRC touched $100 for the first time since May, recovering from a June low of $71.25.
- Dividend change. Shareholders voted 99.3% in favor of daily dividends on Oct. 28, and the first payments began this week.
- Buyback support. Strategy repurchased roughly $2 billion of STRC between late September and late October to narrow the discount.
What happened
Strategy's STRC preferred stock reached $100 on Wednesday, the first time it has traded at par since May, according to Bitcoin.com News, which cited Google Finance data. The shares had fallen as low as $71.25 in June.
The recovery follows two recent changes. On Oct. 28, shareholders approved a move to daily dividends on STRC and three other preferred securities, with 99.3% of votes cast in favor, according to preliminary results shared by Executive Chairman Michael Saylor. The new system took effect Nov. 1, with the first distributions beginning Nov. 2. Strategy also set the November dividend rate at 12% annualized, or $1 per share for the month, per an Oct. 29 filing cited by Bitcoin Magazine.
Strategy has spent heavily to support the price. Bitcoin.com News reported that the company repurchased about $205 million of STRC rather than buying bitcoin, and roughly $2 billion of STRC between Sept. 28 and Oct. 25, bringing year-to-date repurchases to about $2.04 billion. Bitcoin Magazine put total retirements since the discount opened at roughly $2.25 billion.
The milestone came as shares of Strategy's common stock (MSTR) rose more than 7% on the day after bitcoin climbed above $80,000, Bitcoin Magazine reported.
First $85.8KLatest $80.6K-6.0% over the period
Points are daily observations, not closing prices.
Why it matters
STRC, formally the Variable Rate Series A Perpetual Stretch Preferred Stock, is designed as a funding mechanism. Strategy adjusts the dividend monthly to keep the price near $100, sells new shares when the stock trades above par, and uses the proceeds to buy bitcoin. A price at par restores the level at which the company has said it will resume issuing new shares.
Bitcoin.com News noted that crossing $100 does not automatically trigger new issuance or bitcoin purchases; such transactions remain subject to management decisions and market conditions. Bitcoin Magazine framed the open question as whether Strategy reopens its at-the-market program at $100 and whether buyers absorb the new supply.
The preferred stack carries fixed obligations. STRC, STRF, STRK and STRD together carry annual dividends in the hundreds of millions, and the quarter's 5,552 BTC in sales went to fund them and the buybacks, according to Bitcoin Magazine. A Stretch at par lets Strategy meet those obligations with new preferred issuance rather than by selling coins; a Stretch at $89 does not.
What the data shows
Strategy holds 849,327 BTC after adding 811 coins last week, at an average cost of about $75,446, according to Bitcoin Magazine. With bitcoin near $78,300 on Wednesday, the position was about 4% above water. Bitcoin.com News put the value of the BTC stockpile at about $68 billion.
The company reported $20.91 billion in third-quarter operating income, almost all of it unrealized gains, alongside a negative year-to-date BTC yield and a chief financial officer stepping down, Bitcoin Magazine reported. Strategy's latest quarterly results showed about $5.1 billion in U.S. dollar assets as of Oct. 25, including reserves intended to support preferred dividends and debt payments, per Bitcoin.com News.
Background
Stretch launched in July 2025 at $90 with a 9% starting rate, and Saylor described it as the company's "iPhone moment," per Bitcoin Magazine. It grew into the largest tradable preferred in the world, with a market value above $8 billion and a holder base that CEO Phong Le has put at about 80% retail.
The mechanism broke down earlier this year. STRC drifted below par in late January, and Strategy raised the rate to 11.25% in February, 11.5% in March and 12% by summer while the price kept sliding as bitcoin fell toward $65,000. At $89 the at-the-market program sat idle. In late May, Strategy sold 32 BTC for about $2.5 million to cover a Stretch distribution, its first bitcoin sale since 2022, and critics raised the prospect of a "death spiral" that analysts at Benchmark and TD Cowen disputed.
Strategy previously paid STRC dividends twice monthly, having shifted from monthly distributions earlier this year. The company argues daily payments can reduce price swings tied to dividend dates, improve liquidity and appeal to income-focused investors.
What to watch
The immediate test is whether Strategy resumes selling STRC shares now that the price has reached par, and whether demand absorbs the new supply. The company has said it intends to keep the 12% rate until the stock shows sustained stability around $100. How the daily dividend schedule affects trading volatility over coming weeks is also yet to be seen.
Questions readers ask
What is STRC?
STRC is Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, a perpetual preferred with no maturity date that pays cash dividends. Strategy adjusts the rate monthly to keep the price near $100.
Does a $100 price mean Strategy will buy more bitcoin?
Not automatically. Trading at par restores the level at which Strategy has said it will resume issuing new shares, but issuance and any resulting bitcoin purchases remain subject to management decisions and market conditions.
Why did Strategy change to daily dividends?
Shareholders approved the change on Oct. 28 with 99.3% support. Strategy argues daily payments can reduce price swings tied to dividend dates, improve liquidity and appeal to income-focused investors.
