Strategy's Stretch preferred shares, ticker STRC, have climbed back to their $100 par value for the first time in nearly six months, ending a 165-day stretch below par that began after the security launched in July 2025.
The return to par matters because it reopens Strategy's ability to issue new STRC shares. The company follows a strict rule against issuing shares below $100, effectively shelving the instrument as a funding tool while the price sat underwater. With STRC back at par, Strategy can resume issuance through its at-the-market program and channel proceeds into Bitcoin purchases.
STRC hit bottom around $71 as Bitcoin prices fell broadly. Strategy responded with over $2 billion in share repurchases, maintained a $4 billion cash reserve, and raised the dividend rate multiple times. The dividend now stands at 12% annualized, paid monthly on the $100 stated amount.
STRC is a hybrid security that trades like stock but pays like a bond. Its notional value has ranged between $8.4 billion and $10.5 billion as Strategy bought back shares during the recovery. The company has roughly $17.5 billion in authorized STRC capacity, mostly reserved for at-the-market programs.
The dividend represents a meaningful recurring cost. Every dollar raised through STRC comes with a 12% annual payment Strategy must sustain monthly. The tradeoff is that preferred stock raises cash without immediately diluting common shareholders the way new common stock sales would.
Tokenized versions of STRC have emerged onchain, including STRCon 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.
STRC price remains closely linked to Bitcoin movements. The slide to $71 came alongside a broad Bitcoin decline, suggesting the preferred is not fully insulated from the asset it helps fund.