Strategy’s Stretch preferred shares, ticker STRC, have returned to their $100 par value for the first time in nearly six months. The security reached $99.95 and then the full $100 mark between roughly October 29 and November 4, 2026, ending a 165-day stretch below par.
What the return to par means
STRC is formally known as Variable Rate Series A Perpetual Stretch Preferred Stock. It trades like a stock but pays a monthly cash dividend set against a stated $100 amount. For Strategy, formerly MicroStrategy, $100 is more than a round number: the company does not issue new STRC shares below par, so while the price sat under $100, one of its funding tools was effectively shelved.
With STRC back at par, that door can open again. The return to $100 could allow Strategy to resume issuance and channel proceeds into more Bitcoin purchases. The company has an authorized amount of roughly $17.5 billion, mostly reserved for at-the-market (ATM) programs, and much of it has gone unused recently.
The path back
After its July 2025 launch, STRC slid to around $71 as Bitcoin prices fell broadly. Strategy responded on several fronts: management deployed more than $2 billion in share repurchases and kept a cash reserve of $4 billion, positioning that money as support for the recovery and for continued monthly dividend payments. The company also raised the dividend rate several times since launch; it currently stands at 12% annualized, paid monthly on the $100 stated amount.
STRC’s outstanding notional has ranged between $8.4 billion and $10.5 billion, with Strategy buying back billions in shares as part of the push.
Dividend tradeoff and risks
Preferred stock is attractive for Strategy because it brings in cash without immediately diluting common shareholders the way a new common stock sale would. The tradeoff is the dividend bill: at 12% annualized on the stated amount, every dollar raised through STRC comes with a meaningful recurring cost that Strategy must keep paying monthly.
The close link between STRC and Bitcoin prices remains a key risk. The slide to $71 came alongside a broad Bitcoin decline, suggesting the preferred is not fully insulated from the asset it helps fund. For STRC holders, those who bought near the lows have seen a substantial price recovery while collecting a 12% annualized dividend, but new buyers at $100 get the yield without that upside cushion.
Tokenized exposure
STRC has also picked up a second life onchain. Tokenized versions of the security, such as STRCon, have appeared on the market, including on platforms like Ondo. Products tied to STRC and Strategy’s common stock, MSTR, reached a combined market value of around $479 million by late October 2026. That is still small next to STRC’s multi-billion-dollar notional.
