"$STRC is the bridge between Bitcoin, the world's Digital Capital, and stablecoins, the world's Digital Currency."
https://x.com/saylor/status/2087082696879100141
strcUSX puts that bridge on @solana, with a choice the stock itself doesn't offer: which side of the risk you hold.
STRC pays a variable cash dividend, about 12% annualized right now.
strcUSX brings a slice of that stream into YieldVault and splits it in two.
SR-strcUSX is paid first, toward a ~7% target. JR-strcUSX takes what's left, rough minimum ~20% APY, and takes losses first.
Lock USX and pick a seat - or mix both.
What Stretch actually is
STRC is preferred stock that @Strategy lists on Nasdaq - about 3 years of cash on hand to pay dividends.
It exists to pay a dividend: a variable cash rate on a $100 face value, set by the board monthly and paid twice a month. August held at 12.00%.
@saylor's frame for it is Digital Credit: hold a large pool of assets that tend to rise over time, issue credit against that pool with more backing than the credit itself, and use part of the gains to fund the dividend. Bitcoin is the capital. STRC is the credit.
That $100 face value is for dividend math. Exit price is whatever the market prints.
STRC has traded well under it - June took it into the $80s - and Strategy has spent the last two weeks repurchasing STRC from a $4.6b+ USD reserve toward a $100 corporate objective.
Preferred stock sits between a company's debt and its regular shares: it gets paid before shareholders and after lenders, and the dividend is always the board's call.
So the asset is a fat cash dividend strapped to a price that can sit below face value for a long time, while Strategy defends it in public.
Some people want the income with as little of the price risk as possible. Others look at the discount and want everything it might do.
One token can't serve both of them at once.
One stream, two seats
strcUSX holds one pot of STRC exposure inside YieldVault and splits the outcome into two tokens.
You don't own STRC shares either way - you hold a vault token that pays back in USX.
- SR-strcUSX, senior. Paid first, toward a 7% annual target.
The token's value climbs steadily along that path, and junior money stands in front of it to absorb losses.
Exit is instant with a fee, or a free 15-day unlock.
- JR-strcUSX, junior. Gets whatever is left after senior is paid - rough minimum ~20% APY - and takes losses first.
Its price marks the residual claim from vault accounting. Exits run monthly on the 3rd, with caps.
Junior's number is mostly arithmetic.
The vault gets its STRC exposure below face value - near $95, a 12% dividend on $100 works out to about 12.6% on the money actually spent.
Senior takes its 7% first, and everything left lands on junior. The extra is the payment for taking losses first.
And nothing forces a binary choice. 80/20, 60/40 - a mix is two risk profiles held on purpose.
The number that decides everything
How much junior sits next to senior is the number that decides everything, and the vault calls it coverage: everything in the vault divided by senior's share.
The target is about 200% - junior roughly matches senior, and senior can only grow when junior can support it.
What that means in a selloff: with the vault's STRC averaging around $95, senior money starts taking losses only around STRC $47.5 at that coverage level.
STRC has to lose about half its market price before senior is touched.
That's the buffer: live coverage, balances, and rates publish on the Proof of Solvency dashboard, created by @AccountableData.
Below 112% coverage the vault tightens: junior exits narrow and rates adjust to rebuild the buffer.
Below 110% it liquidates: junior eats losses first, and senior takes a loss only if junior is fully gone.
Senior is protected by a buffer you can measure, and it can still lose money after that buffer is spent. Anyone who tells you a senior seat carries no risk is selling something.
If the words senior and junior are pulling up 2008 memories, the difference is visibility.
The asset underneath prices on Nasdaq every trading day, and the who-gets-paid-first rules are enforced by the vault.
Coverage is published live and checked by a third party. The risk sits in the open.
The bridge runs both ways
Back to Saylor's line. A bridge between Bitcoin and stablecoins is only useful if traffic crosses it.
strcUSX is Solana's on-ramp to that bridge.
Every USX locked in means Solstice holds more STRC, and STRC demand is what Strategy turns into more Bitcoin on its balance sheet.
That machine runs in public. Saylor posts the reserve moves and the STRC repurchases week by week, so the loop isn't something you take on faith.
Solana yield on one end. A stronger Bitcoin on the other.
Bitcoin is the asset. Solana is the infrastructure.
The second engine
YieldVault's first strategy, eUSX, earns from funding rates without taking a view on price direction. When those rates run hot its yield fattens, and when markets chill it compresses.
strcUSX earns from STRC's dividend. That dividend doesn't care what funding rates did this week.
That's the point of a shelf. YieldVault is where USX holders pick a strategy and take on its specific risk.
strcUSX is optional and isolated: the STRC book never touches USX reserves, and holding USX alone gives you none of this exposure, in either direction.
The short version
Onchain STRC exposure already exists in other shapes - dollar tokens backed by the stock, or tokenized versions of the shares themselves.
strcUSX is the first Solana-native STRC product with senior protection.
Solana-native means the vault, the token you get paid back in, and the risk rules all live on Solana.
Senior protection means a junior layer that takes losses first, and you can measure how thick that layer is.
One stream, two seats, and you choose where you sit.
SR-strcUSX and JR-strcUSX are live in YieldVault now. Rates and coverage are live at app.solstice.finance/strcusx and on the Proof of Solvency dashboard.
Product docs: docs.solstice.finance/solstice-for-users/yieldvault/strcusx.
Information only. Not an offer or solicitation. Digital assets carry risk, including possible loss of principal. Availability varies by jurisdiction. Past performance is not indicative of future results.
Past performance does not guarantee future results. All investments carry risk of loss. Performance data is provided for informational purposes and does not constitute investment advice.
