Author of the article: Crypto Emergency
Executive Chairman of Strategy Michael Saylor drew the attention of market participants to the unusual indicators of the company's preferred shares (STRC). According to data published on March 29, the 30-day volatility of this instrument was only 2%, which turned out to be lower than similar indicators not only of the main asset classes but also of all companies in the S&P 500 index. For comparison: the volatility of Bitcoin over the same period reached 50%, gold — 37%, and stock ETFs (SPY, QQQ) — 15–19%.
STRC (Short Duration High Yield Credit Stretch) — is a perpetual preferred stock issued by Strategy in July 2025 as part of a bitcoin-oriented treasury model. The instrument trades on Nasdaq and offers an annual yield of 11.5%, paid monthly. Such low volatility is achieved through an embedded mechanism of variable dividends: if the price falls below the par value of $100, payments increase, and if it exceeds that — they decrease. This creates incentives for the quotes to return to the target level and fundamentally distinguishes STRC from traditional preferred shares.
In the capital structure of Strategy, the instrument occupies a special niche. While ordinary shares of MSTR directly reflect the volatility of bitcoin, other preferred issues (STRK, STRF, STRD) offer fixed or convertible yields with varying priority, STRC has become the only instrument in the lineup aimed specifically at minimizing price fluctuations through active dividend adjustment.
Despite the attractive figures, analysts urge not to compare STRC directly with traditional market assets. By its nature, it functions more like a structured credit instrument with a short duration, where stability is ensured by artificial incentives from the issuer rather than organic market pricing. Key risks identified by investors include high concentration on a single corporate issuer, dependence of dividend stability on the company's capital management strategy, as well as the presence of 'tail' risks that are not reflected in short-term volatility indicators.