Saylor: Bitcoin Drops 47% While Strategy’s STRC Gains 9% in a Year

STRC Outperforms arsenic Bitcoin Declines

STRC outpaced bitcoin by 56 percent points implicit the past year, according to a one-year instrumentality illustration Strategy Inc. (Nasdaq: MSTR) Executive Chairman Michael Saylor shared Aug. 16 connected X. The illustration measured returns done the Aug. 14 marketplace adjacent and highlighted the show spread betwixt bitcoin and Strategy’s income-producing securities during the downturn.

Saylor wrote:

“Over the past year, $BTC fell 47%. Our Digital Credit instruments ranged from -27% to +9%, with $STRC up 9%.”

The accompanying illustration showed STRD declining 8%, STRF losing 9% and STRK falling 27%, with bitcoin trading adjacent $63,000 connected Aug. 16. Strategy stated that the one-year calculations covered Aug. 14, 2025, done Aug. 14 and included currency dividends and distributions, making the figures broader than share-price changes alone.

One-year returns for Strategy’s preferred securities and bitcoin. Source: Michael Saylor/Strategy Inc. via X

Stretch, trading nether the STRC ticker, is simply a perpetual preferred banal with a adaptable annualized dividend complaint designed to promote trading adjacent its $100 stated value. Strategy’s authoritative STRC accusation page lists a 12% annualized complaint for August, with currency dividends payable semi-monthly, taxable to committee declaration.

STRD is Strategy’s perpetual preferred banal with a stated fixed 10% yearly dividend payable quarterly. STRF is the company’s senior-most perpetual preferred stock, offering a stated fixed 10% yearly currency dividend payable quarterly. STRK is its convertible perpetual preferred banal with a stated 8% yearly dividend payable quarterly. The dividends are not guaranteed.

Dividends Reshape the Return Comparison

STRC’s 9% one-year summation differs from its existent 12% annualized dividend rate, which applied to lone portion of the measured period. The preferred banal launched successful July 2025 astatine a 9% complaint and climbed done 7 consecutive monthly increases earlier reaching 12% for grounds dates connected oregon aft July 1. Its marketplace terms whitethorn emergence oregon fall, portion dividends were included successful the reported one-year return.

Strategy described integer recognition arsenic a cardinal backing transmission successful its second-quarter fiscal results. The institution reported that STRC issuances raised $7.53 cardinal twelvemonth to day successful 2026 arsenic of July 26, a 254% increase, portion cumulative dividends paid crossed each preferred banal reached $1.06 billion.

The company’s Digital Credit Capital Framework established a currency reserve policy, revised STRC’s dividend policy, and authorized up to $1 cardinal successful preferred-security repurchases alongside a abstracted $1 cardinal communal banal repurchase program. Strategy besides authorized bitcoin income for specified purposes, including backing reserves, dividends, involvement payments, and approved buybacks.

Saylor has presented STRC arsenic the income-producing furniture of a four-part integer wealth stack. His exemplary assigns bitcoin the superior relation portion utilizing preferred securities to make income instruments with antithetic volatility and hazard characteristics.

Lower Volatility Does Not Eliminate Risk

Despite its affirmative one-year return, STRC fell to an all-time debased of $71.25 connected June 26 and has traded beneath its $100 stated worth since. Strategy maintained its 12% dividend rate for August aft the preferred banal closed July astatine $89.46, reflecting the company’s effort to enactment its marketplace price.

Digital recognition repurchases began successful precocious July, erstwhile the steadfast bought 288,930 STRC shares for astir $25 million, an mean of $86.53 per stock and a 13.47% discount to the $100 stated amount. Strategy has sold astir $218.4 cardinal of bitcoin twelvemonth to day to money a information of its preferred dividends.

The dividend operation depends partially connected Strategy’s quality to conscionable continuing currency obligations portion maintaining its bitcoin-focused equilibrium sheet. The preferred banal is not collateralized by the company’s bitcoin holdings. Saylor antecedently said bitcoin would request to execute yearly appreciation supra the company’s BTC breakeven rate for superior gains to screen STRC dividends implicit time.

Bitcoin as an plus class historically carries substantially greater volatility than accepted stocks, bonds, and commodities, which is the spread Strategy’s preferred structures are built to narrow.

Where Strategy’s Common Stock Stands

The one-year illustration covered Strategy’s 4 preferred securities alongside bitcoin, portion MSTR, the company’s people A communal stock, sits beneath each of them successful the superior structure. MSTR closed astatine $93.04 connected Aug. 14, astir 75.52% beneath its level a twelvemonth earlier.

Strategy Inc.’s MSTR terms chart. Source: TradingView

Common shareholders clasp the residual assertion aft preferred dividends, which reached $400.7 cardinal successful the 2nd 4th alone. Strategy posted a second-quarter nett nonaccomplishment of $8.22 billion, oregon $24.45 per diluted communal share, connected an $8.32 cardinal unrealized nonaccomplishment connected its integer assets. The $1 cardinal MSTR repurchase programme remains afloat available, with the institution saying it volition see buybacks erstwhile absorption believes the banal trades beneath intrinsic value.