Strategy has actually created a Bitcoin stock that pays interest every day.
At the October 28 shareholder meeting, 99.3% of the votes approved the change: starting November 1, STRC would pay dividends daily. Its first payment was made on November 3, covering November 1 and 2. For the full month of November, each share will pay $1 in total—about $0.03 to $0.04 per day—with an annualized yield of 12% and a $100 par value. On the Monday the news broke, MSTR rose 4.45% to close at $136.58. On November 4, STRC’s price returned to $100 for the first time since May; at the end of June, it was still around $75.
The backdrop is that Strategy is changing its approach: its third-quarter net income was nearly $19.5 billion, mostly unrealized gains on Bitcoin. But during the week of October 25, it didn’t buy a single Bitcoin—instead, it spent $205 million buying back STRC. It now holds around 848,500 Bitcoin and has about $4.8 billion in cash reserves. The plan is to turn STRC into a “digital credit” product yielding 12% annually and paying interest daily, with a goal of issuing another $10 billion to $30 billion in this kind of preferred stock and using the proceeds to buy Bitcoin and build up its dollar reserves. STRF, STRK, and STRD are scheduled to follow suit and switch to daily dividends on January 1, 2027.
I see this as a double-edged sword. For holders, MSTR is no longer just a leveraged proxy for Bitcoin; it now has an additional layer of actual interest-paying credit. STRC’s return to par suggests the market is buying the story for now. But a perpetual 12% payout is a hard liability. It may be manageable while Bitcoin prices move sideways, but in a bear market, when unrealized gains turn into losses, the pressure of daily payments will first fall on preferred shareholders. $BTC is now at $75,940, down 0.4% over 24 hours. At this level, I wouldn’t chase leveraged proxy assets like MSTR. If you’re after yield, it’s better to first understand how well STRC’s dividend payments are covered before acting.
At the October 28 shareholder meeting, 99.3% of the votes approved the change: starting November 1, STRC would pay dividends daily. Its first payment was made on November 3, covering November 1 and 2. For the full month of November, each share will pay $1 in total—about $0.03 to $0.04 per day—with an annualized yield of 12% and a $100 par value. On the Monday the news broke, MSTR rose 4.45% to close at $136.58. On November 4, STRC’s price returned to $100 for the first time since May; at the end of June, it was still around $75.
The backdrop is that Strategy is changing its approach: its third-quarter net income was nearly $19.5 billion, mostly unrealized gains on Bitcoin. But during the week of October 25, it didn’t buy a single Bitcoin—instead, it spent $205 million buying back STRC. It now holds around 848,500 Bitcoin and has about $4.8 billion in cash reserves. The plan is to turn STRC into a “digital credit” product yielding 12% annually and paying interest daily, with a goal of issuing another $10 billion to $30 billion in this kind of preferred stock and using the proceeds to buy Bitcoin and build up its dollar reserves. STRF, STRK, and STRD are scheduled to follow suit and switch to daily dividends on January 1, 2027.
I see this as a double-edged sword. For holders, MSTR is no longer just a leveraged proxy for Bitcoin; it now has an additional layer of actual interest-paying credit. STRC’s return to par suggests the market is buying the story for now. But a perpetual 12% payout is a hard liability. It may be manageable while Bitcoin prices move sideways, but in a bear market, when unrealized gains turn into losses, the pressure of daily payments will first fall on preferred shareholders. $BTC is now at $75,940, down 0.4% over 24 hours. At this level, I wouldn’t chase leveraged proxy assets like MSTR. If you’re after yield, it’s better to first understand how well STRC’s dividend payments are covered before acting.
