Digital Credit Markets: STRC, STRF, STRK, SATA

As of March 16, 2026, digital credit is a compact public market: six exchange-listed instruments issued by two Bitcoin treasury companies. Strategy accounts for five — STRK, STRF, STRD, STRC, and STRE — while Strive contributes one, SATA. Four of Strategy’s instruments trade on the Nasdaq Global Select Market, SATA trades on the Nasdaq Global Market, and STRE trades on the Luxembourg Stock Exchange.

In current stated amount, the market totals approximately $13.1 billion of dollar-denominated preferred outstanding plus €775 million of euro-denominated STRE — roughly $14.0 billion equivalent. Strategy overwhelmingly dominates the category by size; Strive is now material enough to matter, but not yet large enough to set the benchmark. Strategy’s annual preferred dividend obligation across all instruments is approximately $1.49 billion. (Sources: Strategy.com metrics; Strive SEC filings; Seeking Alpha analysis of company filings.)

All six are perpetual preferred stocks. Four are fixed-rate, two are variable-rate, five are cumulative, one — STRD — is non-cumulative, and only STRK is convertible into common equity. Those design choices, more than the headline yield, explain why these securities trade where they do and why they are not interchangeable.

The market splits into three functional buckets. STRF is the senior-credit line. STRC and SATA are the monthly-paying, variable-rate instruments built to trade near their $100 stated amount. STRK, STRD, and STRE sit in the more opportunistic bucket, where convertibility, fixed-rate income, or euro denomination matter more than par stability. Allocators are choosing among a narrow set of structures that all trace back to the same core question: how much Bitcoin-treasury exposure do you want, how high do you want to sit in the capital stack, and how much rate-reset risk are you willing to accept?

Master Comparison Table

All instruments carry $100 (or €100) stated value and are perpetual — no maturity date. Pricing dates, dividend structures, cumulative status, and convertibility from issuer offering materials and SEC 424B5 filings. Market prices as of March 16, 2026 close. Effective yield = annualized dividend ÷ current market price (simple, not compounded). For variable-rate instruments, effective yield reflects the current rate and changes when the rate resets. STRE price is the last quoted Luxembourg price. (Sources: Strategy.com instrument pages; Strive 8-K filings; Nasdaq; LuxSE; MarketScreener.)

What the table reveals: STRF has the lowest effective yield because it sits highest in Strategy’s preferred stack and trades near stated amount. STRD screens at 13.19% effective yield because it trades at a deep discount — the market pricing in non-cumulative risk. STRC sits near its $100 par after repeated rate increases and functions as the market’s closest thing to a reference instrument. SATA carries the category’s highest stated rate at 13.00%, compensating for Strive’s smaller scale.

Instrument Profiles

STRK — Strategy Convertible Preferred (8.00% fixed)

STRK is Strategy’s only convertible instrument and the oldest digital credit security, priced January 30, 2025 at $80 per share. Each share is convertible at any time into 0.1 shares of Strategy common stock (MSTR). The 8.00% fixed cumulative dividend is paid quarterly. Notional outstanding is approximately $1.402 billion (~14.0M shares). On March 16, STRK traded at $78.16, producing a 10.24% effective yield — a ~22% discount to par. The rate has not changed since issue. (Sources: Strategy.com STRK page; Strategy 424B5.)

The conversion feature provides equity participation while retaining dividend priority over common stock. In Strategy’s capital structure, STRK ranks below STRF, STRC, and STRE but above STRD.

Who allocates here: Investors seeking moderate income plus leveraged Bitcoin upside through the embedded call option on MSTR. The tradeoff is the lowest stated yield in the stack — a bet that conversion value eventually matters.

Key risk: Dilution from future common equity or convertible issuance could reduce the relative economic claim. The conversion feature only generates value if MSTR common appreciates above the conversion threshold. In a prolonged Bitcoin drawdown, STRK holders receive less current income than peers without the conversion payoff materializing.

→ Full STRK profile

STRF — Strategy Senior Fixed Preferred (10.00% fixed)

STRF carries the highest structural seniority among Strategy’s preferred instruments. Priced March 20, 2025 at $85 per share with a 10.00% fixed cumulative quarterly dividend. Strategy’s STRF documents include governance rights and dividend step-up penalties if dividends are missed. Notional outstanding is approximately $1.284 billion (~12.8M shares). On March 16, STRF traded at $100.29 — a ~0.3% premium to par (essentially at par) — delivering a 9.97% effective yield. (Sources: Strategy.com STRF page; Strategy 424B5.)

STRF receives dividends before all other preferred series and sits directly below any traditional debt in the capital stack.

Who allocates here: Institutional investors prioritizing capital preservation within the digital credit universe. STRF’s premium pricing reflects market confidence in Strategy’s ability to service the senior layer. The combination of high stated yield, cumulative protection, and structural priority makes this the straightforward answer when seniority matters most.

Key risk: While senior among preferreds, STRF remains junior to any future secured debt and carries full Bitcoin treasury concentration risk. Fixed-rate means duration and spread risk — STRF can still move meaningfully if comparable yields rise or if the market reprices Strategy’s balance-sheet risk.

→ Full STRF profile

STRD — Strategy Non-Cumulative Fixed Preferred (10.00% fixed)

STRD is the highest-risk instrument in Strategy’s preferred stack. Priced June 5, 2025 at $85 per share with a 10.00% fixed dividend, but the crucial term is that the dividend is non-cumulative — missed dividends are permanently forfeited. Notional outstanding is approximately $1.402 billion (~14.0M shares). On March 16, STRD traded at $75.79, producing the highest effective yield in Strategy’s suite at 13.19% — a ~24% discount to par. (Sources: Strategy.com STRD page; Strategy 424B5.)

STRD’s elevated effective yield reflects both its deep discount to par and the higher amplification ratio inherent in its junior-most position — common equity absorbs a larger share of Bitcoin volatility above it, concentrating the yield premium at this tier.

STRD ranks junior to all other Strategy preferred instruments.

Who allocates here: Yield-maximizing investors comfortable with Strategy’s credit profile who want the highest fixed-rate income available and accept sitting at the bottom of the preferred stack. STRD trades like a high-yield equity slice of the treasury strategy.

Key risk: Permanent income loss. If Strategy’s board does not declare a dividend in a given quarter, STRD holders receive nothing and that payment is never owed. Meanwhile, cumulative instruments continue to accrue, creating a clear subordination in cash-flow priority. The same 10.00% stated rate is available in STRF, which is cumulative and senior — that comparison should inform every STRD allocation decision.

→ Full STRD profile

STRC — Strategy Variable-Rate Preferred (11.50% variable, current)

STRC is the market’s reference instrument — the largest line and the one whose design most explicitly targets price stability around the $100 stated amount. Priced July 24, 2025 at $90 per share with an initial 9.00% variable annual rate paid monthly. The rate path since launch:

Seven consecutive monthly increases as Bitcoin’s price declined. The mechanism is deliberate: when STRC trades below par, Strategy raises the rate to attract buyers. When above par, the rate can be lowered. On March 16, STRC traded at $99.83 — essentially at par — confirming the mechanism is functioning as designed. Strategy’s stated intention is to adjust the rate monthly to keep STRC trading near its $100 stated amount. The mechanism has kept the instrument within a narrow band around par since launch. Notional has grown to approximately ~$8.5 billion (~85.37 million shares) through multiple ATM offerings. In the week of March 9–15 alone, Strategy sold 11.8 million STRC shares, adding $1.18 billion of notional. Dividends are cumulative and paid monthly. (Sources: Strategy.com STRC page; Strategy 8-K filings.)

Who allocates here: Investors seeking the most benchmark-like digital credit instrument — monthly cash flow, near-par trading, and the deepest liquidity in the category.

Key risk: The current rate is not permanent. Strategy says the monthly rate can be adjusted and “may be significantly lower in the future.” Rapid rate resets create income variability. Strategy can also issue debt or preferred stock ranking equally with or senior to STRC without holder consent.

→ Full STRC profile

STRE — Strategy Euro-Denominated Preferred (10.00% fixed, EUR)

STRE is the only non-dollar instrument in digital credit and the only one listed outside Nasdaq. Priced November 6, 2025 at €80 per share with a €100 stated amount, a 10.00% cumulative quarterly dividend in euros, and a 7.75-million-share issue implying €775 million of stated amount outstanding. The last quoted Luxembourg price was €81.75, equating to a 12.23% effective yield. (Sources: Strategy.com STRE page; Strategy 424B5; LuxSE.)

STRE’s offering documents reveal a critical subordination detail: deferred STRE dividends cannot be paid until accumulated dividends on STRF and STRC are paid in full. This places STRE below those two lines in practical seniority, despite sharing a 10.00% stated rate with the senior-most STRF.

Who allocates here: Euro-based allocators and currency-diversified portfolios seeking fixed-rate Strategy exposure without dollar cash-flow risk.

Key risk: Thinner liquidity than Nasdaq-listed peers — wider bid-ask spreads are typical of LuxSE listings. EUR/USD exchange-rate volatility adds a second layer of price fluctuation beyond Bitcoin itself.

→ Full STRE profile

SATA — Strive Variable Preferred (13.00% variable, current)

SATA is Strive’s sole digital credit instrument and carries the highest stated yield in the category. Priced November 5, 2025 at $80 per share with an initial 12.00% variable annual rate payable monthly. Rate has increased four times: 12.00% → 12.25% → 12.50% → 12.75% → 13.00% (effective April 15, 2026). At the 13.00% annualized rate on $100 par, the indicated monthly dividend is $1.0833 per share. As of the March 11 8-K, Strive reported 4,275,118 SATA shares outstanding, implying $427.5M of notional. On March 16, SATA traded at $97.75, producing a 13.30% effective yield at the new rate. Strive has narrowed its target trading range to $99–$101 (from an initial $95–$105) and has stated it will not issue new SATA below $100. (Sources: Strive 8-K filings; Strive PR, GlobeNewswire; Strive Treasury Tracker.)

Strive’s January 2026 follow-on drew more than $600 million of demand for a $225 million offering. The concurrent note exchange retired $110 million of assumed Semler debt and left Strive’s 13,311 BTC holdings 100% unencumbered after paying off the Coinbase loan.

Who allocates here: Yield-maximizing investors comfortable with Strive-specific risk who want the highest income in the category and a simpler one-line preferred stack.

Key risk: Materially higher issuer concentration. Strive holds approximately 13,311 BTC versus Strategy’s 815,061 — a roughly 61:1 ratio. Secondary market depth is thinner. Any Strive-specific corporate event (governance, operational, regulatory) has no second instrument to rotate into.

→ Full SATA profile

Capital Structure Analysis

Strategy’s capital structure, from most senior to most junior:

Debt → STRF → STRC → STRE → STRK → STRD → Common (MSTR)

This ranking is derived from public offering documents, not a single published sentence. Strategy explicitly calls STRF its senior-most perpetual preferred. STRE’s documents state that deferred STRE dividends cannot be paid until accumulated dividends on STRF and STRC are paid in full. STRK is placed above STRD as an analytical judgment: STRK is cumulative and convertible, while STRD is non-cumulative and therefore more loss-absorbing. (Sources: Strategy 424B5 filings for each instrument.)

Seniority shows up in price. On March 16, STRF traded near par with the lowest effective yield in the complex (9.97%), while STRD traded at a deep discount with one of the highest (13.19%). That spread is the market charging for weaker protections and a lower position in the stack.

Strive’s structure is simpler: Debt → SATA → Common (ASST). SATA is the only preferred, so there is no internal preferred stack to sort through. After the January 2026 transactions, Strive’s remaining debt is $10 million (Semler loan) and its Bitcoin holdings are fully unencumbered.

The “Bitcoin-Backed” Distinction

Strategy’s own instrument pages state that its preferred securities “are not collateralized by the Company’s bitcoin holdings and only have a preferred claim on the residual assets of the company.” That is why True North uses “Bitcoin-backed” and not “Bitcoin-collateralized.” (Source: Strategy.com.)

Economically, these securities are supported by corporate Bitcoin treasuries. Legally, holders own preferred stock issued by a public company, not a lien on a segregated pool of Bitcoin. There is no security interest, pledge, or specific lien on any BTC wallets. The structure enables SEC registration and exchange listing under equity rules rather than secured-debt rules, while delivering the economic exposure investors seek.

This distinction changes how credit analysis should be done. A truly collateralized instrument is analyzed through collateral rights. These preferreds must be analyzed through the whole enterprise: Bitcoin holdings, cash reserves, debt above them, newer preferreds that may rank with or above them, and the issuer’s continued access to capital markets. The upside is transparency — public, exchange-listed, disclosure-heavy. The weakness is that recovery in a stress scenario is a balance-sheet question, not a vault-key question.

For True North’s full terminology guide, see Methodology.

Issuer Profiles

Strategy (Nasdaq: MSTR)

Strategy is the benchmark issuer, combining the largest Bitcoin treasury with the deepest capital-markets footprint. In its April 20, 2026 Form 8-K, Strategy reported holding 815,061 BTC with an aggregate purchase price of $61.56 billion and an average cost of $75,527 per bitcoin. Across its preferred complex, current disclosures imply approximately ~$10.0 billion of notional outstanding. Strategy also reported a $2.25 billion USD reserve supporting approximately 2.5 years of preferred dividends and debt interest as of February 1, 2026. (Sources: Strategy 8-K; Q4 2025 earnings.)

Scale matters because digital credit is still an issuer-driven market. Strategy raised approximately $5.6 billion during Q4 2025 and another $3.9 billion between January 1 and February 1, 2026 across common and preferred issuance. That ability to keep opening financing windows is part of the credit story. It is also the concentration risk: digital credit today relies heavily on one issuer’s balance sheet, treasury policy, and market access.

Strive (Nasdaq: ASST)

Strive is smaller but no longer too small to matter. Per its March 11, 2026 Form 8-K: 13,311 BTC held, 4,275,118 SATA shares outstanding, $10 million of remaining debt, Bitcoin NAV of approximately ~$994M at ~$74,712/BTC, and ~1.0% leverage. Strive’s BTC NAV provides approximately 18 years of dividend coverage at current Bitcoin prices — a more operationally relevant measure than the 2.27× Bitcoin NAV coverage of preferred outstanding alone, which means Strive’s Bitcoin is worth more than double its total preferred obligations. (Sources: Strive 8-K; Strive Treasury Tracker.)

Strive’s capital structure is simpler. SATA is the only digital credit line, so there is no internal preferred stack to navigate. After the January 2026 transactions, Strive’s Bitcoin holdings are fully unencumbered. The trade-off is less seasoning, less secondary-market depth, and no instrument diversification within a single issuer.

→ Full risk analysis: Risk Analysis → How digital credit differs from crypto lending: vs. Crypto Lending → Comparison with traditional fixed income: vs. Traditional Credit → The investment case: The Investment Thesis → How we research: Methodology

This content is for informational and educational purposes only. It is not an offer to sell or a solicitation to buy any security. Review all offering documents on SEC EDGAR before investing.