MicroStrategy's (MSTR) perpetual preferred equity, STRC, has reclaimed the $100 par value in pre-market trading for the first time since early November. This milestone is significant as it opens the door for the company to issue additional shares through at-the-market (ATM) offerings, with proceeds potentially funding further Bitcoin acquisitions.
The STRC equity, branded as short-duration, high-yield credit, last traded at the $100 level between November 4 and November 13 before declining to a low near $90. It currently pays an 11% annual dividend, distributed monthly in cash. The dividend rate is reset monthly to encourage trading around the $100 par value and help reduce price volatility. Since its inception, STRC has risen 16% and offers an effective yield of roughly 11%.
Concurrently, MicroStrategy is signaling a major strategic evolution for 2026, shifting focus toward building a digital credit business. According to commentary from Strive's CEO, the company is "gearing up for a massive 2026 in digital credit." This represents a deliberate expansion beyond mere Bitcoin accumulation, aiming to convert its massive Bitcoin reserves into active financial infrastructure.
The digital credit strategy involves using Bitcoin as collateral to issue loans and structured products, generating yield without selling the underlying asset. This approach positions Bitcoin as productive capital and aims to create recurring income streams, diversifying MicroStrategy's revenue model. The company, which holds one of the largest corporate Bitcoin treasuries globally, sees this as a natural extension of its Bitcoin conviction, blending treasury management with crypto-native credit tools.
This strategic pivot is timed with the anticipated maturation of institutional digital credit markets by 2026, as regulation, custody, and infrastructure gain clarity. While risks such as market volatility and counterparty exposure remain, MicroStrategy's experience in high-volatility environments is seen as an advantage.
