STRC: Calculator shows $210 value while redemption $101

Strategy’s pricing dashboard produced an illustrative STRC price of $210.90 at about 08:18 UTC on Oct. 2 while displaying a market-price input of $99.50. The issuer’s amended certificate also allows an optional redemption at $101 per share, or a higher amount it announces, plus applicable unpaid dividends.

The dashboard used a Bitcoin price input of $86,593, an assumed annual return of 10% and volatility of 40%. It displayed an effective yield of 12.06%, a risk-free yield of 5.23% and a modeled BTC Credit of 0.46%. The published formula divides the $12 annual dividend by the sum of the risk-free yield and BTC Credit. Using the displayed yields gives $12 ÷ (5.23% + 0.46%) ≈ $210.90.

The dashboard’s market-price input of $99.50 implied a market spread of roughly 684 basis points. The model replaces that larger market spread with the 46-basis-point BTC Credit. Substituting the smaller modeled spread lowers the discount rate used in the formula and raises the capitalized value, accounting for most of the gap between the illustrative $210.90 and the trading level.

Strategy’s published materials state the calculator is illustrative and not a fair-value determination or an executable quote. The model assumes full scheduled payments, applies a simplified treatment of Bitcoin coverage and claim priorities, and does not explicitly value the issuer’s redemption option or model future dividend resets. The dashboard also notes displayed market prices can be stale.

Under the amended certificate of designations, optional redemptions must leave at least $250 million of stated amount outstanding when partial redemptions occur. A redemption notice must precede the date by between three business days and 60 calendar days. Those terms apply to an issuer action; they do not give holders a right to demand cash at $101.

STRC’s declared annual rate has been 12%. Ordinary rate reductions are limited to a 25-basis-point allowance per monthly reference period, tied to changes in one-month term SOFR with a SOFR floor and provisions addressing prior accumulated dividends. Dividends are cumulative, but cash payment requires board declaration and legally available funds. The payment calendar changed from monthly to twice-monthly effective June 30, 2026. Strategy reported maintaining the 12% rate for periods beginning Oct. 16 and declared a $0.50 semi-monthly payment for the period ending Oct. 31. A proposal to move to daily dividends is scheduled for an Oct. 28 shareholder vote; if approved and adopted on time, the first daily record date would be Nov. 1 with the initial payment on Nov. 2.

Strategy’s Sept. 28 reserve update reported a $5.02 billion USD Reserve designated to support preferred dividends and debt interest, and a separate $1.00 billion USD Cash balance as of Sept. 27. During Sept. 21–27 the reserve funded $22.1 million of preferred dividends while $48.1 million of USD Cash assisted STRC repurchases. Bitcoin is not pledged directly to STRC holders and senior claims or other liabilities can affect the assets available to preferred-stockholders. Executive Chairman Michael Saylor described Bitcoin capital and dollar liquidity as distinct parts of the company’s structure and noted that repurchases do not guarantee a price floor.

The dashboard warns the illustrative Derived Price reflects selected assumptions and cannot establish that STRC is worth more than twice its market price or that an investor can realize the model output or the redemption amount on demand. Differences between the model output and market prices arise from issuer call rights, payment risk, trading conditions, reserve and cash allocation decisions, and how the model treats future dividends and claim priority.