Strategy’s Michael Saylor commits to raising capital with STRC above par

Michael Saylor has drawn a line in the sand on Strategy’s newest financial instrument. The executive chairman committed to issuing shares of STRC, the company’s Variable Rate Series A Perpetual Stretch Preferred Stock, exclusively at or above its $100 par value.

What STRC actually is and why it matters

Think of STRC as a hybrid creature. It’s a perpetual preferred stock, meaning it has no maturity date, that pays a variable dividend and trades on public markets. The par value sits at $100 per share, which functions as the instrument’s anchor price.

Saylor’s commitment is straightforward: Strategy will only raise capital through at-the-market issuance when STRC trades at or above that $100 mark. If it dips below, the company steps back from selling new shares. This protects existing holders from the kind of below-par dilution that can erode confidence in preferred stock instruments.

Launched in July 2025, STRC initially raised approximately $2.5 billion in gross proceeds. That figure has since climbed past $3.4 billion, with the vast majority of capital directed toward one thing: buying more Bitcoin.

Saylor has referred to STRC as a “secret weapon” for Bitcoin accumulation. The structure lets Strategy continuously raise fresh capital from yield-hungry investors while funneling those proceeds into its ever-expanding Bitcoin treasury, all without tapping common equity or taking on traditional debt.

The dividend mechanics keeping STRC near par

The stock launched with a 9% annualized dividend rate. Through a series of upward adjustments, reportedly seven increases by early 2026, that yield has climbed to approximately 11.5% annualized.

Strategy has also proposed transitioning from its current dividend schedule to semi-monthly payouts. When preferred stocks pay dividends on a quarterly or monthly basis, the price tends to spike just before the ex-dividend date and drop immediately after. By splitting payments into smaller, more frequent installments, the company aims to smooth out that volatility.

Less volatility around the par value means more days when STRC trades at or above $100. More days above par means more opportunities for Strategy to issue new shares through its at-the-market program. More issuance means more capital. More capital means more Bitcoin.

Strategy’s broader Bitcoin playbook

STRC doesn’t exist in isolation. It’s one component of Strategy’s multi-layered capital structure, all of which ultimately serves the same purpose: accumulating Bitcoin at scale.

The company, which trades on NASDAQ under the ticker MSTR, has spent years transforming itself from an enterprise software firm into what is essentially a leveraged Bitcoin holding company. Saylor has been the chief evangelist of this approach since 2020, and the introduction of STRC represents perhaps the most sophisticated iteration yet.

By creating a preferred stock layer that sits between common equity and debt, Strategy can raise capital without the covenant restrictions of bonds or the earnings dilution of issuing more common shares. The $3.4 billion raised through STRC alone represents a substantial war chest, and because the instrument is perpetual, there’s no maturity date forcing Strategy to return the principal.

What this means for investors

Saylor’s par value commitment introduces an unusual dynamic for STRC holders. If Strategy won’t sell below $100, it removes a significant source of potential selling pressure from the market. It’s worth noting what this commitment is not, however: it’s not a buyback guarantee. If STRC trades below par, the company isn’t obligated to purchase shares to defend the price. The commitment only applies to new issuance, not secondary market activity.

For Bitcoin bulls, the STRC structure represents a persistent source of institutional buying pressure. Every dollar raised through the preferred stock program that gets deployed into Bitcoin is net new demand entering the market through a single, well-capitalized buyer.