STRC (Stretch) Variable-Rate Perpetual Preferred Stock: Mechanics and Risk Profile

STRC (Stretch) is Strategy Inc.'s Variable Rate Series A Perpetual Preferred Stock, designed to offer a high, variable monthly dividend with a target price around its $100 par value. Its coupon adjusts based on board discretion, constrained by SOFR and prior dividend payments, to maintain trading at par. While offering attractive double-digit yields, STRC carries elevated credit and structural risks due to its subordination in the capital structure, reliance on ongoing ATM issuance for dividend funding, and exposure to Bitcoin price volatility, requiring careful consideration of its yield-versus-credit-risk profile.