STRC Dividend Calculator

What Is STRC?

STRC — Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock — is a publicly traded preferred stock issued by Strategy (formerly MicroStrategy). It trades on Nasdaq near a $100 par value and pays a monthly cash dividend, currently set at an 11.5% annual rate.

Strategy uses the capital raised from selling STRC shares to buy Bitcoin for its corporate treasury. The dividend rate adjusts automatically to keep the share price anchored around $100:

How Are STRC Dividends Taxed?

STRC dividends are currently classified as return of capital (ROC) for US tax purposes. That means you don't owe income tax when you receive them — instead, each payment reduces your cost basis in the shares.

Once your basis reaches $0, subsequent dividends become taxable at your long-term capital gains rate rather than ordinary income rates. This deferred treatment is why the tax-equivalent yield is significantly higher than the stated rate:

For an investor in a 15% capital gains bracket, an 11.5% STRC yield is equivalent to earning 13.5% from a fully taxable investment. The higher your bracket, the greater the advantage.

Where Does the Yield Come From?

Bitcoin generates no cash flow on its own — no interest, no dividends, no rent. The 11.5% yield is funded from three sources:

STRC sits in the middle of Strategy's capital stack — safer than common equity (MSTR) but junior to the company's convertible debt. As long as Bitcoin appreciates faster than the 11.5% annual cost and capital markets remain open, the structure works. If Bitcoin enters a prolonged decline, the funding mechanism comes under pressure.