Michael Saylor, Founder and Executive Chairman of Strategy, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss investing in bitcoin and Digital Credit.
Investing directly in bitcoin has generated strong long-term returns, averaging approximately 38% annually over the last six years. However, bitcoin’s price can be volatile, and the asset itself produces no cash flow. Equity investors may also consider Strategy (MSTR), which holds 846,000 bitcoin on its balance sheet. Strategy stock has outperformed bitcoin over the last six years, as the firm’s capital structure amplifies returns on its bitcoin holdings.
Because credit investors prefer to earn cash flows, Strategy created Short Duration High Yield Credit (STRC), a variable-rate perpetual preferred stock designed to offer high yield, high liquidity and low volatility. STRC currently pays a 12% annualized dividend rate, payable semi-monthly in cash. Strategy targets STRC’s price at $100 through a variable-rate framework and active capital management, with the dividend rate evaluated monthly. STRC currently has approximately $9 billion in notional value outstanding and more than $140 million in average daily trading volume, making it the world’s most-traded preferred stock.
Strategy’s bitcoin assets substantially exceed the notional value of its preferred securities, with net reserves of over $57 billion as of September 25, 2026. Strategy measures this asset coverage through its BTC Rating, which is currently 6.3x for STRC. Strategy also calculates a BTC Breakeven Rate, representing the annual bitcoin appreciation required to offset its ongoing interest and preferred dividend obligations. At the current BTC Breakeven Rate of approximately 2.29%, bitcoin appreciation above that level would exceed those ongoing obligations. Strategy also maintains a USD Reserve, currently approximately $5.0 billion, designated to support preferred-stock dividends and interest expense. STRC is designed to be tax-efficient, with the dividend yield counting as a return of capital until the investment’s full basis has been repaid.
Strategy offers a number of other preferred stock investment opportunities. Long Duration Senior Credit (STRF) is a perpetual preferred with a fixed 10% annual dividend rate. Structured Bitcoin (STRK) is a convertible perpetual preferred stock with an 8% annual dividend rate and convertible into 0.1 shares of MSTR stock. Long Duration High Yield Credit (STRD) is a perpetual preferred stock with a fixed 10% annual dividend rate. Long Duration Euro-Denominated Credit (STRE) is a perpetual preferred stock with a 10% annual dividend rate, all payable quarterly in cash.
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