Michael Saylor, Executive Chairman of Strategy (formerly MicroStrategy), has been actively repositioning the company's preferred stock, Stretch (STRC), as a distinct asset class separate from Bitcoin (BTC) and the company's common stock (MSTR). In a series of social media posts, Saylor emphasized that STRC is engineered for income, stability, liquidity, and capital preservation, rather than direct exposure to Bitcoin's price volatility.
STRC Structured as Income-Focused Preferred Equity
On May 9, Saylor wrote on X: “STRC is credit engineered for income, stability, liquidity, and principal protection. It is backed by our BTC and USD assets and supported by active treasury operations.” He added: “We structured it as preferred equity, not debt, to make it more scalable, durable, global, and versatile.” STRC is a perpetual preferred stock that currently pays an annual dividend yield of 11.50% in monthly cash installments. The dividend rate adjusts each month to incentivize trading near its $100 par value, thereby dampening price fluctuations. Strategy has described STRC as a “short-duration credit” instrument, designed to have less price sensitivity compared to longer-dated preferred stocks.
According to Strategy, STRC reached a size of $8.5 billion in just nine months, making it one of the largest preferred stock products traded on the Nasdaq tied to digital assets. Saylor described the relationship metaphorically: “STRC is a passenger jet. BTC is a fighter jet. MSTR is a rocket ship.” This analogy underscores STRC's focus on stability and income versus the high-growth, high-volatility profiles of BTC and MSTR.
Proposed Dividend Change to Boost Stability and Liquidity
Strategy has proposed altering STRC's dividend payment schedule from monthly to semi-monthly (payments on the 15th and last day of each month), with the total annual dividend amount unchanged. According to the company, the change is designed to stabilize price, reduce cyclicality, increase liquidity, and grow demand. If approved, the new schedule would begin with the record date of June 30 and the first payment under the new cadence on July 15. Nasdaq's timing rules limit how closely payments can be spaced, but Strategy believes the proposal complies.
Strategy's Bitcoin Holdings and Financial Performance
As of early May 2026, Strategy's Bitcoin holdings total 818,334 BTC, representing approximately 3.9% of Bitcoin's fixed supply of 21 million. This large reserve underpins Saylor's narrative that STRC is supported by a substantial asset base. However, the company reported a net loss of $12.54 billion for the first quarter of 2026, largely due to Bitcoin valuation losses overshadowing revenue growth and active fundraising efforts. Despite the loss, Strategy continues to use preferred equity and other instruments to acquire more Bitcoin. Saylor's recent communications consistently separate STRC from BTC and MSTR, positioning it as a credit layer within Strategy's Bitcoin-centric capital structure.
This article is based on statements from Michael Saylor and Strategy official releases. Data as of May 10, 2026.