Security Comparison
MSTR vs STRC: Common Stock or Preferred Income?
MSTR is Strategy common stock; STRC is its variable-rate perpetual preferred stock. The choice is equity participation versus a preferred dividend claim on the same issuer. Neither security directly owns bitcoin for the investor.
Updated September 30, 2026
How these figures are calculated: methodology.
Best for
- MSTRInvestors who want common-equity participation and accept residual issuer risk.
- STRCInvestors who want a preferred dividend claim and accept variable payments and credit risk.
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.
MSTR has lagged STRC over the trailing twelve months, posting a -53.10% total return against 15.64%. Measured from Jul 2025 — the start of shared available history — STRC has compounded at 17.52% a year versus -55.55% for MSTR. STRC has been the steadier holding, though — annualized volatility of 22.1% against 80.4% for MSTR. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD cumulative | 1Y cumulative | Since Jul 2025 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|
| MSTR | -2.59% | -53.10% | -55.55% | 80.4% | -1.00 | -1.43 | -77.1% |
| STRC | 9.63% | 15.64% | 17.52% | 22.1% | 0.45 | 0.67 | -24.3% |
Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jul 2025” measures every fund from July 30, 2025 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the past year. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the past year) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Side-by-side snapshot
| Metric |  MSTR |  STRC |
|---|---|---|
| Full name | Strategy Inc. | Strategy Variable Rate Series A Perpetual Stretch Preferred Stock |
| Issuer | — | Strategy Inc. |
| Last Close | $153.09 as of September 30, 2026 | $99.35 as of September 30, 2026 |
| Distribution rate | — | 13.09% |
| Trailing 12-month yield | — | 11.87% |
| Distribution Safety Score™ | — | 79 |
| Safety-Adjusted Yield | — | 10.34% |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | None | Semi-Monthly |
| Underlying index | — | Preferred equity security issued by MicroStrategy Incorporated. |
| Objective | Operates an enterprise analytics software business while pursuing a Bitcoin treasury reserve strategy, accumulating one of the largest corporate Bitcoin balance sheets. | Stretch (STRC) is Strategy’s perpetual preferred stock that pays a variable cash dividend twice a month (semi-monthly) — most recently $0.50 per share per payment, an annualized rate of about 12% on its $100 par value. STRC’s dividend rate is reset each month to encourage trading around STRC’s $100 par value and to help strip away price volatility. |
| Asset class | Equity | Equity |
| Inception date | N/A | N/A |
| Beta | 3.597 | — |
| Last dividend | — | $0.50 declared, pays 10/15/2026 |
| Ex-dividend date | — | 09/30/2026 |
Bottom lineChoose MSTR if you want common-equity participation and accept residual issuer risk. Choose STRC if you want a preferred dividend claim and accept variable payments and credit risk. No. STRC is a perpetual preferred security, not a bank deposit or a Treasury bill. Its dividend rate can change, payments are not guaranteed, and its market price can fall. MSTR common shares bear residual equity risk and do not have STRC's preferred dividend terms. Both depend on the same issuer and its bitcoin-related financing risks.
MSTR vs STRC: Common Stock or Preferred Income?
MSTR is Strategy common stock; STRC is its variable-rate perpetual preferred stock. The choice is equity participation versus a preferred dividend claim on the same issuer. Neither security directly owns bitcoin for the investor.
| MSTR | STRC | |
|---|---|---|
| Approach | Common equity | Variable-rate perpetual preferred stock |
| Risk review | Bitcoin exposure, financing and dilution | Issuer credit, rate and price risk |
| Expense ratio | — | — |
| Portfolio fit | Review combined holdings and weights | Review combined holdings and weights |
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Quick verdict
MSTR is Strategy common stock; STRC is its variable-rate perpetual preferred stock. The choice is equity participation versus a preferred dividend claim on the same issuer. Neither security directly owns bitcoin for the investor.
No. STRC is a perpetual preferred security, not a bank deposit or a Treasury bill. Its dividend rate can change, payments are not guaranteed, and its market price can fall. MSTR common shares bear residual equity risk and do not have STRC's preferred dividend terms. Both depend on the same issuer and its bitcoin-related financing risks.
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Deep dive
Income and capital
MSTR does not currently pay a regular cash dividend. STRC has a variable preferred dividend, subject to its terms and declaration. Its quoted distribution rate is not a promised return.
Issuer concentration
Both are securities of Strategy. Holding both does not diversify issuer credit or bitcoin-related business risk. STRC has priority over common equity but remains exposed to loss.
Ownership costs
Neither is an ETF charging a fund expense ratio. Trading spreads, taxes and changes in market price still affect the investor's realized return.
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Frequently asked questions
Is STRC a cash substitute for investors considering MSTR?
No. STRC is a perpetual preferred security, not a bank deposit or a Treasury bill. Its dividend rate can change, payments are not guaranteed, and its market price can fall. MSTR common shares bear residual equity risk and do not have STRC's preferred dividend terms. Both depend on the same issuer and its bitcoin-related financing risks.
How should I compare risk and ownership costs?
Use matching dates and definitions for returns, distributions, and fees. Beta describes historical benchmark sensitivity, not guaranteed downside protection. Check current bid-ask spreads and premiums or discounts; AUM alone does not determine the price available for your order.
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These comparisons follow the Dividend Vision methodology.