Key takeaways
STRC (Stretch) is a Nasdaq-listed perpetual preferred stock issued by Strategy Inc, formerly MicroStrategy.
It pays a variable bi-monthly cash dividend, adjusted by Strategy’s board to keep the share price trading close to its $100 par value.
Strategy uses the money it raises from STRC to buy more Bitcoin, but STRC itself is not collateralised by those bitcoin holdings.
STRC sits senior to common stock and some other preferred shares, but junior to corporate debt and the STRF preferred series.
Owning STRC gives indirect, company-dependent exposure to Bitcoin’s value. It is not the same as owning bitcoin directly.
It’s not FDIC insured and carries no guarantee of returns or liquidity; the dividend rate can be lowered at any time.
You can buy STRC through a traditional brokerage account, or as a tokenised asset (STRCx) via Instant Buy and Sell on Luno.
STRC is the ticker for Stretch, a Nasdaq-listed preferred stock issued by Strategy Inc, the company formerly known as MicroStrategy. It aims to pay investors a variable bi-monthly cash dividend and is closely tied to Strategy’s Bitcoin holdings, but it isn’t Bitcoin. This guide breaks down what STRC is, how it works, and what to weigh up before you look into it.
What is STRC in simple terms?
STRC (formally the Variable Rate Series A Perpetual Stretch Preferred Stock) is a share class issued by Strategy Inc that behaves more like a bond than a typical stock. Instead of hoping the share price rises, holders are paid a regular cash dividend, and the company adjusts that dividend rate from month to month to keep the share price trading as close as possible to its $100 par value.
Strategy is best known for holding a large Bitcoin treasury on its balance sheet. STRC is one of several funding tools the company uses to buy more Bitcoin, alongside common stock sales and other preferred stock series such as STRK, STRF, STRD, and STRE.
STRC listed on the Nasdaq Global Select Market on 30 July 2025, following an initial public offering that raised approximately $2.521 billion in gross proceeds.
Who issues STRC and why?
Strategy issues STRC to raise cash, which it then uses to buy Bitcoin. When STRC trades at or above its $100 par value, Strategy sells more shares into the market and uses the proceeds for Bitcoin purchases and general corporate purposes. This is sometimes referred to as an “at the market” offering.
Michael Saylor, Strategy’s executive chairman, and Phong Le, its president and chief executive, oversee the strategy behind the security and the company’s broader Bitcoin accumulation approach.
How does STRC work?
A variable, monthly-adjusted dividend
STRC’s headline feature is its dividend, which Strategy’s board can adjust as they see fit. The dividend rate is adjusted monthly to encourage trading around STRC’s $100 par value and to help strip away price volatility. In practice, this means the rate has moved several times since launch as Strategy has tried to keep demand and supply balanced around par.
Because the dividend is discretionary, the rate you see today is not guaranteed going forward. Strategy has stated the current rate is not indicative of future rates, and the board can lower it.
Where STRC sits in Strategy’s capital structure
If Strategy were ever wound down, the order in which different security holders get paid matters. STRC sits senior to common equity and other preferred shares such as STRD and STRK, but remains junior to corporate debt and the STRF preferred series. In other words, STRC holders have a stronger claim than common shareholders, but a weaker one than bondholders and STRF holders.
Importantly, STRC is not collateralised by Strategy’s Bitcoin holdings directly, it only carries a preferred claim on the company’s residual assets. That distinction matters when weighing up how “backed by Bitcoin” a security really is.
STRC versus Bitcoin: what’s the difference?
STRC is a share of preferred stock, bought and held through a traditional brokerage account.
Bitcoin is a decentralised digital asset, held in a wallet or on a crypto exchange.
STRC gives you indirect, company-dependent exposure to Bitcoin’s value through Strategy’s balance sheet and its ability to keep paying dividends. It is not a blockchain-based token, and it does not represent direct ownership of Bitcoin.
Owning STRC means you’re also exposed to Strategy as a company: its debt, its management decisions, and its ability to raise further capital, on top of Bitcoin’s price movements.
If your goal is direct ownership of Bitcoin itself, buying and holding Bitcoin on a regulated platform is a different investment altogether from buying a company’s preferred stock.
How to buy STRC
STRC trades on Nasdaq under the ticker STRC, so it’s bought the same way as any listed stock: through a brokerage account. Investors buy STRC through platforms such as Fidelity, Charles Schwab, E*TRADE, Interactive Brokers, Merrill Edge, Robinhood, SoFi Invest, Vanguard, Webull, or Wells Fargo.
If you’d rather not open a traditional brokerage account, digital asset platforms like Luno offer tokenised access to STRC instead.
How to buy STRC on Luno
Luno lists a tokenised version of STRC, ticker STRCx (“Strategy PP Variable”), as part of its tokenised stocks and ETFs offering. Buying tokenised STRC shares works the same way as buying any other asset on Instant Buy and Sell:
Open the Luno app and sign in. If you are new to Luno, create an account and complete the verification steps first.
Add funds to your Luno wallet using your usual deposit method.
Search for tokenised STRC shares in the app.
Select Buy, enter the amount you want to spend, and review the order. You do not need to buy a whole share, so you can start with a small amount.
Confirm the purchase. Tokenised STRC shares will appear in your portfolio, where you can track them and sell whenever you choose.
Risks to understand before looking into STRC
STRC combines features of equity and debt, but it doesn’t carry the protections of either a savings account or a government bond. Some points worth weighing up:
Bitcoin price dependency. Strategy’s balance sheet is heavily weighted toward Bitcoin. A sustained fall in the Bitcoin price affects the company’s financial position and, in turn, its ability to sustain dividend payments.
Discretionary dividend. The board sets and can change the rate. There’s no contractual guarantee it stays where it is today.
No collateral backing and no deposit insurance. STRC is neither a bank deposit, nor FDIC insured, nor regulated in the same way as bank accounts, money market funds, or treasuries, and it may not be a comparable investment to those instruments.
No guaranteed liquidity or returns. Share price can trade above or below its $100 par value depending on market conditions and sentiment.
Frequently asked questions
What does STRC stand for?
STRC is the Nasdaq ticker for Strategy’s Variable Rate Series A Perpetual “Stretch” Preferred Stock.
Is STRC the same as buying Bitcoin?
No. STRC is a preferred stock in a publicly traded company. It offers indirect exposure to that company’s Bitcoin holdings, not direct ownership of Bitcoin.
How often is the STRC dividend paid?
Dividends are paid monthly in cash. The rate itself is reviewed and can be adjusted by Strategy’s board each month.
Can I buy STRC on a crypto exchange?
STRC is a Nasdaq-listed security, so it’s typically bought through a traditional brokerage account. Some platforms that offer both crypto and stock trading also list it.
Is STRC guaranteed or insured?
No. STRC is not FDIC insured, has no guarantee of returns or liquidity, and its dividend depends on Strategy’s financial health.
