Par-targeted preferreds: how STRC and SATA manage price

Most preferred stock pays a fixed rate, so its price moves to reflect changes in market yields and in the issuer's credit standing. A par-targeted preferred works the other way round: the issuer adjusts the dividend rate, and its own issuance and repurchases, with the stated aim of keeping the trading price close to the $100 stated amount.

Two instruments use this design as of 22 October 2026: Strategy's STRC and Strive's SATA. This guide explains the levers each issuer has and the limits its filings put on them. It describes mechanisms, not likely outcomes, and is not investment advice.

The idea

If a preferred trades below $100, a higher dividend rate makes it more attractive at that price, which tends to push the price up. If it trades above $100, the issuer can sell more shares into the market, increasing supply, or can lower the rate. The issuer therefore uses the rate as a dial.

For holders, the intended result is an instrument whose price stays near $100 while its income varies. That is the reverse of a fixed-rate preferred, where income is constant and price varies.

The target itself

STRC: $99–$100, stated in the quarterly report

The STRC certificate of designations sets no price band (8-K, 29 July 2025). Strategy's quarterly report for the period to 30 June 2026 states the objective for STRC "to trade over time at $99 to $100" and refers to a "targeted range of $99-$100", while warning that the price may vary significantly from it (10-Q, filed 3 August 2026). The range is an intention, not a contractual term. In October 2026 8-Ks, Strategy said management would advise holding the rate at 12.00% until STRC shows sustained trading near $100 (8-K, 15 October 2026).

SATA: $99–$101 since 11 March 2026

Strive originally described a $95–$105 target range for SATA and narrowed it to $99–$101 on 11 March 2026 (8-K). The range is stated as the issuer's intention, not a contractual term. At the same time Strive said it would not sell SATA below $100, and on 13 October 2026 it made that minimum sale price binding in the certificate of designations (8-K).

Lever 1: the dividend rate

Both issuers set the rate for each period at their discretion, but the filings limit downward moves.

STRC (certificate of designations):

• A cut may not exceed 25 basis points plus the decline in one-month term SOFR over the prior period.
• The rate may not go below one-month term SOFR.
• No cut is allowed while any accumulated dividends are unpaid.

SATA (prospectus supplement):

• A cut may not exceed 25 basis points plus the decline in monthly SOFR over the prior period, and may not go below monthly SOFR.
• Cuts are allowed only if all accumulated dividends are paid and the prior period's average price was at least $99 (with an additional condition during the first three months).
• Notice must be given before the period starts.

There is no equivalent cap on increases in either set of terms. The practical effect is that the rate can rise quickly but can only drift down slowly.

How the rates have moved

STRC began at 9.00% from 29 July 2025 and was raised most months to 11.50% for March 2026, then to 12.00% for semi-monthly periods with record dates from 1 July 2026. It was held at 12.00% for October 2026 (8-K, 30 September 2026) and stated at 12.00% for November 2026 record dates (8-K, 15 October 2026).

SATA began at 12.00% from 10 November 2025 and was raised by 25 basis points four times to 13.00% for periods from 15 April 2026 (8-K). It has been held at 13.00% each month since, most recently for November 2026, announced on 13 October 2026 (8-K).

Neither rate has been cut as of 22 October 2026. Rising rates indicate the issuer was applying the upward lever; they do not on their own show where the price traded.

Lever 2: issuance

When a par-targeted preferred trades above $100, the issuer can sell new shares through its at-the-market programme. This raises money and adds supply. Under the floating liquidation preference rules, shares sold above $100 lift the liquidation preference of the whole series to at least the sale price (for SATA, capped at $110).

Strive's binding $100 minimum sale price means SATA can only be issued at or above the stated amount. Strategy's filings reviewed for this guide contain no equivalent binding floor for STRC.

Lever 3: repurchases

When the price is below $100, an issuer can repurchase shares, reducing supply. Strategy has used this lever heavily for STRC. Its digital credit repurchase programme was increased from $2.0 billion to $3.0 billion on 19 October 2026, with $1.16 billion remaining as of 18 October 2026 (8-K). STRC shares outstanding were 104,894,705 as of 30 June 2026 (10-Q); a later total has not been reported by Strategy, and any figure derived from weekly repurchase filings is an estimate.

Lever 4: the call price

A call price places a practical ceiling on how far above par the shares are likely to trade, because the issuer could redeem at that price. STRC is callable in whole or part at $101 plus unpaid dividends; SATA at $110 plus accumulated dividends. SATA's liquidation preference is also capped at $110.

How payment frequency fits in

Both issuers have moved to more frequent payments. SATA has paid each business day since 16 June 2026, while still setting its rate monthly (8-K). STRC moved from monthly to semi-monthly on 30 June 2026, and daily record dates are subject to a vote on 28 October 2026 (8-K). More frequent payments reduce the size of the price drop around each ex-dividend date, which affects how closely the price can sit to $100.

Comparing the two

	STRC	SATA
Stated target	"At or close to" $100, no band	$99–$101 since 11 Mar 2026
Rate (as of 22 Oct 2026)	12.00% (Oct and Nov 2026 record dates)	13.00% (Nov 2026 period)
Cut limit	25bp + fall in 1-month term SOFR; floor at SOFR	25bp + fall in monthly SOFR; floor at SOFR; price test
Binding minimum sale price	Not in filings reviewed	$100 since 13 Oct 2026
Call price	$101	$110

For a side-by-side page see SATA vs STRC.

What to check in the filing

• The exact wording of the issuer's price intention and any numeric range.
• The rate-cut limits, the SOFR tenor used and any price conditions.
• The most recent rate announcement and the period it covers.
• Any binding minimum sale price on new issuance.
• The call price, partial-call conditions and liquidation preference cap.
• The size and remaining capacity of any repurchase programme.