STRC is everywhere right now, and for good reason. An 11.5% yield, paid monthly, backed (in some way) by Bitcoin. Sounds almost too good to be real. So I want to break it down without the BS 👇
First, what even is STRC?
STRC (aka “Stretch”) is a preferred stock from Strategy, the company formerly known as MicroStrategy. It’s not a bond, not exactly a stock, and definitely not a savings account. It sits somewhere in between. The idea is simple on the surface: you buy shares around $100, and in return, you get a high monthly dividend. Right now, that’s around 11.5%. But under the hood, it’s a pretty complex system.
Why is everyone talking about it?
Because the pitch is insanely attractive. You’re getting double digit yield, paid monthly, with relatively stable price action so far. On top of that, the dividends are currently treated as return of capital, which can be very tax efficient.
Compared to traditional options like bonds or money markets, STRC looks like a no-brainer… at least at first glance. So where does the money actually come from?
This is the most important part. Strategy isn’t generating enough cash from its business to pay those dividends. Instead, it raises capital by issuing more STRC shares, uses that money to buy Bitcoin, and relies on Bitcoin appreciating over time to keep the whole system going. In simple terms, the “engine” behind STRC is Bitcoin itself. If Bitcoin keeps going up over time, the model works. If it doesn’t, things get a lot more complicated.
So is this risky?
Yes. And that’s where a lot of the debate is happening. Critics compare it to past high yield blowups, while supporters argue it’s backed by real assets and a transparent strategy.
And as per usual, the truth is somewhere in the middle.
STRC is not a scam (well, most likely), but it’s also not a safe, guaranteed income product. There’s no obligation for Strategy to return your initial capital (like a CD or money market account), and dividends can be adjusted or even paused if things go south. The biggest risks to keep in mind are simple:
If Bitcoin enters a long bear market, the whole model gets pressured
If demand for STRC drops, the price can fall below $100
If dividends change, the entire value proposition shifts
Who is this actually for?
This is not for everyone. It might make sense for someone who wants Bitcoin exposure without holding it directly, or for investors looking for income and who fully understand the risks. But if you’re thinking of this as a savings account replacement or “easy passive income”… it’s not that. Well, it IS “easy” but you need to understand it before you buy it. If you don’t fully understand how it works, it’s probably not the right play.
That said, I’m barely getting into the details here. If you want a deep-dive breakdown on STRC, how it works, how they pay the yield, all the risks, and which accounts are best for buying it in, you need to watch my most recent video:
STRC is a strategy that a lot of people are deploying right now.
One strategy I’ve been very excited about is opening an IRA (Roth or SEP) and buying Bitcoin inside it. If you buy BTC in a Roth with a company like iTrustCapital, you can enjoy all your future gains completely tax-free.
Or if you buy and hold something like Solana, Ethereum, or USDC, you can also earn rewards tax-free inside the same account.
I personally have an account with them (an SEP IRA for my business) and I’m stacking in that account while prices are still low before the next bull run blows up.
