Glossary · C
Clean-up redemption
An issuer's right to redeem all of a preferred series once only a small fraction remains outstanding, typically below 25% of the shares ever issued. It lets the issuer retire a small, illiquid remainder.
Revised 22 October 2026 · Suggest a correction
A clean-up redemption lets the issuer redeem all, but not less than all, of a preferred series once the amount outstanding has shrunk below a threshold. It exists so that the issuer does not have to keep a small, thinly traded series in place for ever.
The 25% test
For STRC, Strategy may make a clean-up redemption if fewer than 25% of all the STRC shares ever issued, in the IPO and any later offering taken together, remain outstanding. The price is a cash amount equal to the liquidation preference as of the business day before notice is given, plus accumulated and unpaid dividends (8-K, 29 July 2025).
The same structure applies to STRF, STRE, STRD (with declared, not accumulated, dividends) and to Strive's SATA and SATS. STRK measures the 25% against the liquidation preference issued in its IPO.
Why it matters now
For STRF, STRK, STRD and STRE, the clean-up and tax redemption rights are the only ways Strategy can redeem. There is no general optional call. A repurchase programme that shrinks a series could, over time, bring it close to the 25% threshold. In the week to 18 October 2026 alone, Strategy repurchased 1,938,780 STRC shares (8-K, 19 October 2026). STRC also carries a separate optional redemption at $101.
Price compared with market
The clean-up price is the liquidation preference, which is at least $100 (€100 for STRE). If a series is trading below par when a clean-up redemption is announced, holders receive more than the market price. If the series is trading well above par, the floating liquidation preference partly tracks the market.
What to check in the filing
- The threshold (25%) and what it is measured against
- The redemption price and dividend treatment
- Notice period