Glossary · D
Discount to par
How far a preferred share's market price sits below its $100 stated amount, shown as a percentage. A negative figure means the share trades at a premium to par.
Revised 22 October 2026 · Suggest a correction
Discount to par measures the gap between a preferred share's market price and its stated amount:
discount to par = (par − price) ÷ par
A share at $96 has a 4% discount. A share at $102 has a −2% discount, which is a 2% premium.
Why preferreds trade away from par
Perpetual preferreds have no maturity, so nothing pulls the price back to $100. The price moves with:
- the dividend rate compared with market yields
- how the issuer's credit is perceived (for bitcoin treasury companies, this is closely linked to the bitcoin price)
- supply from issuance, such as ATM programme sales
- whether the issuer may redeem at a fixed price (for example STRC at $101)
Examples from filings
- On 21 August 2026, STRC closed at $96.18, a 3.82% discount to its $100 stated amount (FWP, 24 August 2026).
- In July 2026 Strategy repurchased 288,930 STRC shares at an average of about $86.52. That is roughly a 13.5% discount, and the company described it as a 13% discount to par (Q2 2026 10-Q; results release, 30 July 2026).
- Strategy's STRF, STRK and STRD were first sold at $85, $80 and $85 respectively, which were discounts to par at issue.
How it connects to other measures
A discount raises the effective yield. Issuers that practise par-targeting treat a persistent discount as a reason to act. Strategy's options include raising STRC's rate, using its repurchase programme, or both.
21DC shows the discount to par on each instrument page, with the closing price and date it uses.
What to check in the filing
- The stated amount (not legal par value)
- Any optional redemption price that may cap the upside