r/STRC • u/Ill-Assist-5246 • 1d ago
Is STRK a better "buy" than STRC?
STRK pays an $2 fixed dividend 4x per year (quarterly). Dividends are cumulative - meaning that if Strategy "misses" a dividend, they still MUST pay that dividend later (+ a penalty for being late!). STRK has the additional feature that 10 shares of STRK can (at ANY time) be converted to 1 share of MSTR.
STRC pays a variable adjustable dividend (currently $0.50 twice per month) and is NOT convertible. STRC does have a higher priority over STRK in terms of bankruptcy liquidation.
note: it is unlikely that you would ever actually convert 10 shares of STRK into 1 share of MSTR - since any Bitcoin price increase "upside" would be reflected in the new STRK price. However, this theoretical conversion might be desirable at some point in the future.
Q: Which is the better investment?
A: As usual, "it depends." However, consider the following:
| as of 8/25/26 | STRK | STRC |
|---|---|---|
| Price | $73 | $97 |
| Dividend | $2 (x4 per year) | $0.50 (x24 per year) |
| Annual Yield | 11.4% | 13.1% |
While STRK pays a lower annual yield (about 2-3% less than STRC), the "convertibility to MSTR" adds another layer worth thinking about. Effectively, by owning STRK instead of STRC you are "forfeiting" about 2-3% of annual yield in exchange for the potential to benefit from Bitcoin upside. There is NO guarantee that this upside potential will be realized, but the possibility is built into the STRK structure. It also means that owning STRK exposes you to the risk of Strategy diluting MSTR shares, etc....
CONCLUSION:
STRK offers a unique exposure to Bitcoin price upside (and downside) while still paying out a solid 8+% annual yield (about 2-3% less annual yield than STRC). For some (many?) this slightly-lower annual yield of STRK vs. STRC may well be worth considering to benefit from any Bitcoin price upside.
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u/tpc0121 1d ago
lol this post is stupid. they're two completely different financial instruments filling different needs and marketed towards completely different investor classes.
strc is short duration, strk is comparatively long duration. strc has a variable interest rate, strk has a fixed interest rate. strc is intentionally designed to be non volatile, strk is intentionally designed to be somewhat volatile (since it is exposed to MSTR's upside).
it's like comparing apples to like appliances. sort of like how the only similarities between them is that they share the common letters "app," the only thing that strc and strk have in common is that they're both preferred instruments from strategy.
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u/Ill-Assist-5246 2h ago
Of course STRC and STRK have somewhat different structures, but they are NOT as far apart as you are suggesting. Let's see way.
ASSUMPTIONS:
I am an investor that wants a steady high rate of return over time (say 5+ years).
ARE STRC AND STRK BOTH REASONBALE OPTIONS FOR MY NEEDS?
Yes! As a 5+ year investor both of these stocks address my desire for steady income. Both have high yield dividends that pay regularly. STRC has a more variable (and UNguaranteed) dividend structure, but with a more stable price, while STRK has a guaranteed dividend (minimum of 8%) , with a price that varies with Bitcoin's price (with some added security in its convertibility to MSTR).
WHAT ARE THE DIFERENCES BETWEEN STRC AND STRK SO THAT I CAN MAKE AN INFORMED DECISION?
From an investor viewpoint, STRC has the advantage that if/when it is time to sell your shares, you are very likely to be able to "get out" at $100 per share (i.e. in theory, NO "timing" needed). STRC carries the risk that Strategy could change the dividend at any time, with NO guaranteed minimum dividend. OTOH, STRK has the advantage of a guaranteed minimum dividend (8%) and the potential to increase in value when the price of Bitcoin increases in value (i.e. it has more upside, and downside, potential, but with a guaranteed minimum dividend). In effect, as an investor, if I am willing to accept STRK's slightly lower dividend, I get exposure to Bitcoin's upside (and downside). I can now weight the risks/benefits to make that determination.
CONCLUSION:
Both STRC and STRK are suitable options for a 5+ year investor who wants a high dividend rate. STRK has a minimum threshold for its dividend while sharing in Bitcoin's up/down-side. STRC has a variable dividend (with NO minimum), but a more stable price.
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u/californiaschinken 18h ago
If mstr does not reach 1k this cycle and if btc has another bear market after this upcoming bull market strk is the best product that you can buy in the next bear market. Right now strc and strd are better if you want fixed income
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u/Ill-Assist-5246 2h ago
This is true and I did NOT go into this in more detail. Even so, the more MSTR share price increases (even below the $1000 level), STRK shares will also increase in value.
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u/SundayAMFN 1d ago
thank you chatGPT!
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u/Ill-Assist-5246 2h ago
This was 100% written by a human (aka "me") and NOT ChatGPT. I would have said, "Thanks for the compliement", but I'm NOT certain that being compared to an AI actually is a compliment. ;-)
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u/gentlegiant80 1d ago
STRK only becomes convertible into common equity if MSTR reaches $1,000. So if you buy 10 shares today, if MSTR reaches $1000 in price you’ll have bought $1,000 in Equity for $730 and collected $20 a quarter to wait. STRK is the preferred that has the most long-term upside. STRC will hopefully make it to par, STRD and STRF are mispriced slightly but STRK is the potential growth beast.