Retail Investors Flock to Strategy’s STRC Over Volatile MSTR Stock

Retail investors are increasingly favoring Strategy’s preferred share STRC over its volatile common stock MSTR, CEO Phong Le said Thursday.

While retail holds about 40% of MSTR-now down 56% in six months to $134-they account for roughly 80% of STRC ownership. That equates to $4 billion of STRC’s $5 billion market cap.

Le attributes the shift to STRC’s 11.5% annual dividend, low volatility, and Bitcoin-backed overcollateralization-features that align with income-focused investors, including retirees.

Benchmark-StoneX analyst Mark Palmer noted STRC “maps better to how most retail investors think about income-generating assets,” unlike MSTR, which acts as a leveraged, non-yielding Bitcoin proxy suited for risk-tolerant traders.

STRC trades near its $100 par value on Nasdaq and is accessible via Robinhood, Kraken, and Webull. When it trades above par, Strategy issues more shares to buy Bitcoin; if below, it hikes dividends to boost demand.

Institutional investors still prefer MSTR for its liquidity and asymmetric upside, leaving STRC to carve a distinct retail base-expanding Strategy’s capital-raising capacity for Bitcoin accumulation.

The firm has already raised over $1.5 billion through STRC this month alone.