Bitcoin Crashes Below $65K, But Michael Saylor's STRC Still Pays 12% — Here's How

Bitcoin's Rough Month

Bitcoin plunged over 21% in the past month, trading near $64,000 on Nov. 14, 2026. The leading cryptocurrency is down 32% over the year, leaving many investors reeling. But Michael Saylor, founder and executive chairman of Strategy Inc. (Nasdaq: MSTR), is pointing to a different story: the performance of the company's income-paying preferred shares, STRC.

Saylor's Digital Credit Model

In a post on X, Saylor highlighted how STRC, also called Stretch, has delivered positive returns even as bitcoin tumbled. He outlined his digital credit model:

"Bitcoin is Digital Capital. Strategy transforms it into Digital Credit. Over the past month, bitcoin fell 17.3%. STRC's price was essentially flat, and dividends brought its total return to +1.0%."

According to the chart shared by Saylor, STRC returned 13.4% over one year, while bitcoin lost 29.8% in the same period. Over three months, bitcoin gained 8.7%, slightly beating STRC's 7.5% return. The figures are through Nov. 13 and include STRC dividends without assuming reinvestment.

What is STRC?

STRC is Strategy's preferred stock with a 12% variable annualized dividend rate. As of Nov. 13, it closed at $99.91. At 12%, the dividend amounts to $12 per year per $100 stated amount per share, if the rate remains unchanged. Unlike direct bitcoin ownership, STRC represents a financial claim on the issuer, and its distributions depend on corporate funding.

Bitcoin Holdings Underwater

Strategy's bitcoin holdings have taken a hit. With 850,364 BTC disclosed, valued at $64,428 each, the holdings are worth approximately $54.79 billion against a purchase cost of $64.16 billion. That implies an unrealized loss of about $9.37 billion.

Funding the Dividends

To support its payment obligations, Strategy holds a $4.77 billion designated dollar reserve for preferred-stock dividends and debt interest, plus $146.2 million in cash. During Nov. 2-8, the company used $21.1 million from the reserve to pay preferred-stock dividends. It also bought back 1,887,464 STRC shares for $188.3 million and purchased 1,036 BTC for $81.9 million using proceeds from common-stock sales.

Criticism from Peter Schiff

Economist Peter Schiff has questioned the sustainability of STRC payments, challenging the assumption that long-term bitcoin appreciation can support the model. Saylor's latest chart, however, focuses on historical investor returns rather than future funding.

The Takeaway

While bitcoin's price struggles, Saylor is keen to show that STRC offers a yield-generating alternative for investors seeking exposure to the bitcoin ecosystem without direct price volatility. Whether that model holds up in the long run remains to be seen.