Strategy’s Bitcoin credit calculator generated an illustrative price of $210.90 for its STRC perpetual preferred stock on Oct. 2, 2026, contrasting sharply with a contemporaneous market price input of $99.50. How the Strategy Pricing Formula Reaches $210.90
At approximately 08:18 UTC on Oct. 2, the tool relied upon a 40% volatility estimate, a 10% expected annual return, and a Bitcoin price figure of $86,593. Displayed in its STRC section were a 5.23% risk-free yield, a 12.06% effective yield, and 46 basis points representing BTC Credit, which is Strategy’s calculated credit spread.
Deconstructing the Pricing Formula
The published pricing formula divides the annual dividend by the sum of the risk-free yield and BTC Credit. Using a $12 annual dividend and the displayed inputs gives: $12 ÷ (5.23% + 0.46%) ≈ $210.90. The arithmetic reproduces the rounded output. Represented by the shown market price, the row’s market spread stood at 684 basis points, denoting the additional yield above the risk-free rate. Replacing the considerably wider market spread with 46 basis points decreases the discount rate applied in the formula, thereby increasing its final result.
Strategy Can Elect Optional Redemption at $101 per Share
Strategy holds the option to redeem shares at $101 each, or at any higher figure it chooses to publish, pursuant to the amended certificate of designations for STRC. Inclusion of compounding and applicable accumulated unpaid dividends occurs alongside adjustments for any declared dividends that are handled separately for record holders. Upon issuing notice, any partial optional redemption must ensure that an uncalled stated amount of at least $250 million remains outstanding. The redemption date follows the notice by between three business days and 60 calendar days. Strategy expressly says the output is neither a fair-value determination nor a price target, and that the call can make Derived Price diverge substantially from realizable market prices.
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