Par-targeting

Par-targeting describes a variable-rate preferred whose issuer says it intends to manage the instrument so that it trades near its $100 stated amount. The main tool is the monthly dividend rate. If the price falls below the target, the issuer can raise the rate. If the price runs above it, the issuer can lower the rate within limits set by the terms.

How it applies to STRC

Strategy's stated objective is for STRC "to trade over time at $99 to $100" (results release, 30 July 2026). The Q2 2026 10-Q lists other tools beside the rate: USD Reserve management, bitcoin sales and STRC repurchases. It also says Strategy will not necessarily raise the rate just because STRC trades below $100 (10-Q, filed 3 August 2026). The rate rose from 9.00% at launch (July 2025) to 12.00% for periods from July 2026, and was held at 12.00% for November 2026 (8-K, 15 October 2026).

How it applies to SATA

Strive narrowed SATA's target range from $95–$105 to $99–$101 on 11 March 2026 and said it would not sell new SATA below $100 (8-K, 11 March 2026). An amendment on 13 October 2026 made the $100 minimum sale price a binding term of the certificate of designations (8-K, 13 October 2026). The target range itself remains an intention.

Limits

• Rate cuts are capped by the rate adjustment mechanism and cannot take the rate below one-month SOFR.
• Upside is capped by the optional redemption price: $101 for STRC and $110 for SATA.
• Neither issuer promises any trading price. Both filings say the price may vary significantly from the target.

What to check in the filing

• The exact target range, and whether it is in the terms or only in a statement of intention
• Rate floor and step-down limits
• Optional redemption price