Bottom Line
MSTR's non-convertible perpetual preferred STRC is a structural financing tool that fuels the engine buying 72,000 BTC per quarter — offering an 11.5% coupon with no BTC upside exposure.
Reading depth
- STRC Structure — The Full Fund-Flow PictureSTRC is a non-convertible perpetual preferred. The investor forgoes BTC upside for an 11.5% coupon while absorbing MSTR credit risk, with the $100 quasi-peg as a floor.Jump to section
- BTC Acquisition Time-Series — How Powerful Is the STRC Engine?The axis of financing has shifted entirely from MSTR common to STRC, making STRC the only channel that accumulates BTC without diluting common holders.Jump to section
- STRC 11.5% vs DeFi Yields — How Much Better?With DeFi yields compressed to one-tenth of their prior level, STRC's surface spread of 8.9 points and after-tax spread of 9.8 points is unmatched in today's market.Jump to section
- Institutional Hedging — How to Lock In the 11.5%STRC's 11.5% is not risk-free, since roughly 5 points of it is compensation for underwriting MSTR credit and BTC downside tail risk.Jump to section
- Bottom Line — STRC Is a Repeatable BTC EngineSTRC's absolute firepower is smaller than the one-off Q4 2024 surge, but as a non-dilutive, repeatable engine it is superior in persistence and predictability.Jump to section
STRC Structure — The Full Fund-Flow Picture
First, the structure itself. When an investor puts money in, what path does it take to reach BTC, and who holds which rights and obligations? A single diagram has to answer that.
The key point: STRC is a "non-convertible perpetual ." The investor gets no participation in BTC upside — only an 11.5% cash coupon while absorbing MSTR credit risk. In return, the $100 quasi-peg structure, decoupled from MSTR's own share price, serves as a protective floor.