Preferred Stock Comparison
STRC vs STRK: Which Is the Better Pick in 2026?
A head-to-head comparison of Strategy Variable Rate Series A Perpetual Stretch Preferred Stock and Perpetual Strike Preferred Stock covering yield, cost, risk, and income potential.
Data updated August 13, 2026
Best for
- STRCInvestors who want the steadier, bond-like income of a preferred security.
- STRKInvestors who want higher current income (11.70% vs 6.29% for STRC).
Side-by-side snapshot
| Metric | STRC | STRK |
|---|---|---|
| Full name | Strategy Variable Rate Series A Perpetual Stretch Preferred Stock | Perpetual Strike Preferred Stock |
| Issuer | Strategy | Strategy |
| Last Close | $95.31 as of August 13, 2026 | $68.05 as of August 13, 2026 |
| Distribution yield | 6.29% | 11.70% |
| Distribution Safety Score™ | 81 | 50 |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Semi-Monthly | Quarterly |
| Underlying index | Preferred equity security issued by MicroStrategy Incorporated. | Preferred equity security issued by MicroStrategy Incorporated. |
| Objective | 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. | Provide investors with an 8% fixed coupon through MicroStrategy's preferred equity structure. |
| Asset class | Equity | Equity |
| Inception date | N/A | N/A |
| Last dividend | $0.5000 | $2.0000 |
| Ex-dividend date | 08/31/2026 | 06/15/2026 |
Bottom lineChoose STRC if you want the steadier, bond-like income of a preferred security. Choose STRK if you want higher current income (11.70% vs 6.29% for STRC).
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Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
STRC has outpaced STRK over the trailing twelve months, posting a 9.40% total return against -31.19%. Measured from Jul 2025 — when the younger fund began trading — STRC has compounded at 13.03% a year versus -27.36% for STRK. STRC has been the steadier holding, though — annualized volatility of 22.1% against 35.9% for STRK. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD | 1Y | Since Jul 2025 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|
| STRC | 3.05% | 9.40% | 13.03% | 22.1% | 0.20 | 0.30 | -24.3% |
| STRK | -13.86% | -31.19% | -27.36% | 35.9% | -1.17 | -1.53 | -47.7% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 12, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jul 2025” measures every fund from July 30, 2025 — the youngest fund's first trading day — 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.
Quick verdict
STRC (Strategy Variable Rate Series A Perpetual Stretch Preferred Stock) and STRK (Perpetual Strike Preferred Stock) are both dividend-paying preferred stocks, but they take different approaches.
STRK offers the higher yield at 11.70% vs 6.29% for STRC. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
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Deep dive
Yield & income
On a $10,000 investment, STRC would generate roughly $52.42/month, while STRK would produce $97.50/month, at current distribution rates.
Strategy & risk
Both STRC and STRK wrap Preferred equity security issued by MicroStrategy Incorporated. with similar strategies (bitcoin and bitcoin). The practical differences are yield target, fee structure, and issuer track record — not the underlying mechanic.
Security details
STRC (Strategy Variable Rate Series A Perpetual Stretch Preferred Stock) is a preferred stock. STRK (Perpetual Strike Preferred Stock) is a preferred stock.
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Frequently asked questions
What is the current distribution yield for STRC and STRK?
STRC currently distributes 6.29% and STRK 11.70%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is STRC or STRK better for dividend income?
It depends on your goals. STRK currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between STRC and STRK?
Both STRC (Strategy Variable Rate Series A Perpetual Stretch Preferred Stock) and STRK (Perpetual Strike Preferred Stock) track Preferred equity security issued by MicroStrategy Incorporated. with similar approaches — the labels "bitcoin" and "bitcoin" describe closely related mechanics. The real differences show up in yield target (6.29% vs 11.70%), expense ratio (— vs —), and issuer (Strategy vs Strategy).
Can I hold both STRC and STRK?
You can, but expect significant overlap. Both funds use similar strategies on Preferred equity security issued by MicroStrategy Incorporated., so holding them together gives you two wrappers around effectively the same exposure — not true diversification. Weigh issuer, fee, and yield differences rather than treating them as complementary.
Is STRC or STRK safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — STRC scores 81, STRK scores 50, so STRC's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
How much income does $10,000 in STRC vs STRK generate?
At current rates, $10,000 in STRC would generate roughly $52.42 per month ($629.00 annually). The same in STRK would produce about $97.50 per month ($1,170.00 annually).
Which has performed better historically, STRC or STRK?
STRC has outpaced STRK over the trailing twelve months, posting a 9.40% total return against -31.19%. Measured from Jul 2025 — when the younger fund began trading — STRC has compounded at 13.03% a year versus -27.36% for STRK. STRC has been the steadier holding, though — annualized volatility of 22.1% against 35.9% for STRK. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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STRC vs STRK — at a glance
Generated August 8, 2026.
Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.
Overview
STRC and STRK are perpetual preferred stocks issued by MicroStrategy, both offering fixed-income-like returns through equity structures. STRC pays a variable dividend reset monthly and distributed semi-monthly, currently yielding 6.38%. STRK carries an 8% fixed coupon paid quarterly and yields 12.32% at its current price of $67.05. Both securities tie investors to MicroStrategy's underlying business—primarily its bitcoin holdings and corporate treasury operations—rather than to a diversified fund or index.
How they differ
The defining difference is coupon structure: STRC resets its monthly dividend to stabilize price around $100 par, while STRK locks in an 8% fixed coupon regardless of price movement. At STRC's current price of $95.01, the variable-reset mechanism has kept it close to par; STRK, trading at $67.05, reflects the market's discount relative to its stated coupon. This price gap creates a second key distinction: STRK's 12.32% distribution yield is more than double STRC's 6.38%, but that higher yield reflects STRK's steeper discount to par and carries duration risk if MicroStrategy's credit profile or bitcoin holdings deteriorate. Payment frequency differs too—STRC pays semi-monthly while STRK pays quarterly—which affects reinvestment timing and cash-flow predictability. Both are very new; STRC launched in July 2025 and STRK in February 2025, so performance track records are minimal.
Who each is best for
- STRC: Fits investors seeking price stability and semi-monthly distributions who value the monthly reset mechanism's effort to anchor the security near par. Suits those comfortable with variable-rate structures and willing to trade liquidity and price management for less yield-chasing behavior.
- STRK: Designed for investors prioritizing higher current income and comfortable accepting a wider discount to par in exchange for an 8% fixed coupon. Appeals to those who want certainty around coupon rate and can tolerate the mark-to-market volatility inherent in a lower-priced preferred.
Key risks to know
- Issuer concentration and non-diversification: Both securities are direct obligations of MicroStrategy—there is no fund diversification or asset allocation. Credit deterioration at the issuer is credit deterioration for the entire position.
- Bitcoin price and treasury volatility: MicroStrategy's financial stability and ability to service these preferred dividends depend heavily on the value of its bitcoin holdings and corporate treasury. Significant declines in bitcoin or equity prices could pressure the company's capital position and distribution capacity.
- Limited trading history and liquidity: Both securities are very new (STRC less than a year, STRK launched in early 2025). Bid-ask spreads may widen in stressed markets, and secondary market liquidity cannot be assumed.
- Perpetual call and refinancing risk: As perpetual preferreds, both securities lack maturity dates and are callable at the issuer's discretion. MicroStrategy could refinance at lower rates if market conditions permit, capping upside for holders seeking price appreciation.
- Preferred subordination: In a MicroStrategy bankruptcy or restructuring, these preferred securities rank behind all debt obligations and senior to common equity only. Equity-like losses are possible in distress scenarios.
Bottom line
STRC pursues price stability through monthly resets at a lower current yield; STRK offers higher current income but with greater price discount and fixed-coupon structure. If you value par preservation and semi-monthly cash flow, STRC's mechanism aligns with that goal; if you prioritize maximum current distribution and can tolerate wider price swings, STRK's 12.32% yield may appeal. Both tickers concentrate risk in a single issuer whose value depends on bitcoin and cryptocurrency markets. Past performance doesn't predict future results, and these securities' short histories provide limited data on how they behave through market cycles.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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