What are Strategy's products? From STRK to STRC explained
We'd love your feedback.
Strategy (formerly MicroStrategy) is widely known as the first major digital asset treasury company: a term for firms which accumulate cryptocurrency as a core aspect of their business. Helmed by longtime bitcoin evangelist Michael Saylor, the company has grown to become the fourth largest holder of BTC with over 761,000 coins (approx. 3.6% of total supply).
Investors can gain leveraged exposure to bitcoin by buying the company’s stock. In addition, throughout 2025 Strategy launched a range of other investment vehicles beyond its basic common stock. Each of these secondary assets offers different investment terms, and holds a different spot in the capital structure. Together, they form a fundraising machine built with one objective: perpetual bitcoin accumulation.
In this article, we’ll be covering all of the financial products issued by Strategy, along with their architecture and function.
How Strategy works
Strategy’s primary goal is to continually scale its BTC holdings. It does this by raising cash, which it then uses to purchase bitcoin. The simplest way it does so is by selling its Nasdaq-listed MSTR shares onto the market.
Accretive dilution
When the equity is valued higher than its BTC holdings, this means it’s trading at an “equity premium.” This premium is typically expressed as a multiple called mNAV (Multiple of Net Asset Value). An mNAV higher than 1.0 represents an equity premium, while a number below 1.0 represents a discount (meaning the equity is worth less than the BTC on the balance sheet).
When mNAV is high and the equity is trading at a premium, the company can issue new shares without hurting the positions of existing holders. That’s because the buying power gained from selling one share outweighs the dilution it causes.
This means that, despite more shares being on the market, the net asset value per share actually increases (known as “accretive dilution"). This in turn boosts the share price and equity premium even further. For a closer look at how this process works, take a look at our DAT explainer article.
Alternative fundraising strategies
In addition to this core fundraising mechanism, Strategy has several other options which can raise funds without releasing any new MSTR onto the market at all. It does this by issuing “preferred shares” under different tickers.
This is useful when poor sentiment or price volatility flip the equity premium into a discount. Issuing new common shares in these circumstances would yield more dilution than purchasing power, hurting the BTC-per-share for existing holders.
In such cases, preferred shares offer a fundraising avenue that will not harm the BTC-per-share of existing holders. When equity premiums are squeezed, this gives Strategy the chance to bring up their net asset value by buying more bitcoin, without issuing any new MSTR.
What is a preferred share?
A preferred share (or preferred stock) is partway between a regular stock and a bond. These shares typically come with dividends, and holders of preferred shares get priority over regular stock holders when it comes to payouts. This means that those dividends payouts are processed before any profit distributions to common shareholders.
The flipside is that preferred shareholders don’t get voting rights and have less upside potential if the company’s common stock price rises. In exchange for that trade-off, they receive more predictable income. Strategy issues five main preferred shares, each with its own investment terms. In order of seniority, these are:
- STRF and STRE
- STRK and STRC
- STRD
The common stock comes in at the bottom of that pecking order, below STRD. Meanwhile, privately issued credit notes have top priority, above STRF and STRE. Although each has its own risk-reward profile, these are all different parts of the same engine.
This order of priority is also the order for dividends payouts. It's important to note that Strategy has final discretion over dividend rate adjustments, and whether dividends are released at all. It's possible for payments to be missed or delayed, which can have different consequences depending on the specific stock. Some have 'cumulative dividends' which build up in lieu and are still due to investors at a later date (if possible). Others are 'non-cumulative': any missed payments are simply lost.
Next, we'll cover each of Strategy’s offerings, in ascending order of seniority.
What is MSTR?
- Distribution order: Last
- Dividends: None
MSTR is the Strategy’s publicly traded common stock. This is the simplest product offered, representing standard ownership of the company. The stock trades on the Nasdaq and acts as a leverage proxy for bitcoin. Individuals and institutions can gain BTC exposure by buying and holding MSTR.
What is STRD?
- Distribution order: Junior (fourth)
- Dividends: 10% annual, paid quarterly
Launched in June 2025, Stride (STRD) is the least senior of Strategy’s preferred stock offerings. That means that it’s second only to the common shares in terms of dividends distribution order. It offers a fixed 10% annual dividend based on a stated “par value” of $100. Essentially this means that each share nets $10 per year.
The dividends it offers are non-cumulative. This means that missed payments are not paid in lieu: they’re simply lost.
What is STRK?
- Distribution order: Mid (third)
- Dividends: 8% annual, paid quarterly
Strike (STRK) is another Nasdaq-listed preferred share, launched in January 2025. STRK offers a lower dividends rate than STRD, paid on the same $100 “par value”. However, unlike its siblings, STRK shares are convertible.
This means that holders can opt to convert STRK to common MSTR shares at an exchange rate of 10:1. Holders can therefore still gain exposure to the upside of the basic company stock, if MSTR shares trade high enough to make the conversion profitable.
STRK share dividends are cumulative, meaning any missed payments are still due to investors.
What is STRC?
- Distribution order: Mid (third)
- Dividends: Variable, paid monthly
Launched in July 2025, Stretch (STRC) is another Nasdaq-listed preferred stock from Strategy. Unlike its siblings, the dividends on STRC are variable: the rate shifts in order to keep the price trading around a target value of $100. These shifts come in 0.25% monthly increments.
This means that if the price drops below $100, the rate will be increased to entice new buyers. If the price then shoots up past $100, dividends will drop to bring it back down. This means that the yield on offer for investors — and the strain on Strategy’s cashflow — can change depending on market conditions. At time of writing, it sits at 11.5%.
STRC share dividends are cumulative, meaning missed payments are still due to investors.
What is STRF?
- Distribution order: Senior (second)
- Dividends: 10% annual, paid quarterly
Strife (STRF) is the most senior of Strategy's preferred stock offerings, meaning that it places ahead of the rest in the dividends payout pecking order. Launched in March 2025, it trades on the Nasdaq alongside the company’s other offerings. The stock gives 10% annual dividends on a $100 “par value”, meaning $10 a year per share.
The STRF dividends rate can be hiked as a penalty if any dividends payments are missed, up to a maximum of 18%. Holders also gain voting rights in the company in such an event. STRF is the only preferred stock offering from Strategy to include such penalties for the company.
STRF share dividends are cumulative, meaning missed payments are still due to investors.
What is STRE?
Distribution order: Senior (second)
Dividends: 10% annual, paid quarterly
Stream (STRE) is a Euro-denominated equivalent of STRF, launched on the Luxembourg Stock Exchange in 2025. The stock has a €100 “par value” and 10% dividends, mirroring its American counterpart. Despite being Strategy’s first non-US preferred stock offering, this product has failed to gain much traction since launch and is not tracked on the Strategy’s dashboard.
STRE share dividends are cumulative, meaning missed payments are still due to investors.
What are Strategy’s senior credit notes?
Distribution order: First
These credit notes represent corporate debt issued by Strategy to raise funds. These assets pay out a low interest rate, from 0 to 2.25%. They sit at the top of distribution order, meaning these low-interest payments are processed before any other payouts. Senior notes are also generally convertible, meaning holders have the options to swap for basic MSTR equity.
Unlike the preferred stock options above, each group of credit notes has an expiry date (2028, 2029, etc.). Once this deadline is reached, the notes are either redeemed for cash (if available) or converted into MSTR if the strike price is hit. These strike prices vary depending on the terms of the debt note, and represent a set price at which the debt notes can be converted to equity. If this price isn't hit, investors will opt for cash.
This system limits downside risk while giving the option to participate in the upside if MSTR shares rise. This means these investment vehicles are more suitable for conservative investors, including institutions. However, they are not risk-free, as even cash repayments ultimately depend on Strategy’s ability to meet its obligations or refinance its debt.
To date, Strategy has issued over $8.2 billion of these credit notes (compared to $7.7 billion in preferred stock offerings).
Where does the money for dividends come from?
The dividends described above leave Strategy with substantial payout obligations every year. The current tally is around $1 billion annualy, and this is only set to increase with further issuance of preferred shares and debt. The funds to cover these payouts primarily come from running further ATM (at-the-market) offerings for MSTR and preferred stocks. Strategy also runs a legacy software business, but this only brings in a modest $100 million per year.
When mNav is trading healthily above 1.0, the company can continue to sell new MSTR shares onto the market. The funds generated from this now go not only to buying BTC, but also to covering yield liabilities on preferred shares and debt. Should these programs ever fail to generate enough funds to meet these payout obligations, the company may be forced to dip into its cash reserves (reportedly sitting around $2.25 billion).
Failing that, dividends payments could be halted or delayed. This is why the seniority of each product matters, as it directly affects their risk exposure if the company’s model begins to fail. Should the capital engine start to run out of fuel, the common stock MSTR is the most exposed. Meanwhile the low-yield corporate debt notes are the most insulated, getting first dibs on payouts. Each preferred stock option sits somewhere in the middle.
Strategy also holds sole discretion over altering the terms attached to each preferred stock, meaning they have the power to bring dividends rates down if necessary.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.