Key Highlights
- STRCx, the tokenized version of Strategy’s Stretch preferred stock, launched on Kamino Finance.
- Users can earn auto-compounded yield and borrow against STRCx collateral.
- The token is backed 1:1 by underlying preferred shares held with a regulated custodian.
$STRCx, Strategy’s Stretch preferred stock tokenized by xStocks, is now listed on the lending market on Kamino Finance, a decentralized finance platform operating on the Solana blockchain.
According to the official announcement made on Thursday, the stock is designed by Payward, $STRCx, representing a 1:1 tokenized form of Strategy’s Nasdaq-listed perpetual preferred stock known as Stretch ($STRC). This marks the first lending market for the asset on Kamino.
Chainlink manages the pricing architecture
STRCx is 1:1 collateralized via the underlying preferred shares deposited through a regulated custodian. This token auto-compounds its monthly dividends using the rebasing process.
In the STRCx market of Kamino, one can stake STRCx and gain the 11.5% APR automatically compounded and take loans against STRCx collateral up to a max loan-to-value (LTV) of 67% with liquidation occurring at an 80% threshold, giving 2x leverage.
The market functions independently in terms of risk parameters such as collateral ratios, liquidation price, and oracle configuration, irrespective of the core Kamino lending protocol. STRCx pricing is managed by an architecture that is built in partnership with Chainlink.
The platform collects data not from on-chain liquidity but from different U.S. stock exchanges. This includes monitoring of the market situation and stale price detection in case of any halting, outage, or unusual price fluctuations in the market. Prices deviating from a particular range from the last closing prices of the market will be disregarded.
Strategy uses preferred stock to expand Bitcoin holdings
$STRC, the perpetual preferred stock of Strategy, pays an annual dividend of 11.5% per share on the $100 face value in cash paid monthly. The dividend was raised seven consecutive times after initially being launched in July 2025 with a yield of 9%.
The proceeds from the sale of preferred stock were used to buy Bitcoin. The firm currently owns more than 843,000 BTC, which is claimed to be the highest ownership among any corporation in the Bitcoin community. Strategy had been using convertible debt instruments to finance Bitcoin purchases.
As the state of the Bitcoin market changed (becoming less volatile, the introduction of spot ETFs, and greater institutional involvement), the conversion feature became less attractive. Moreover, issuing more common stocks would dilute the stake of current shareholders. Perpetual Preferred enabled the issuance of funds that were needed to purchase Bitcoins without having to establish any maturity dates for debts or dilute any common stock.
STRC splits Bitcoin exposure between investor groups
The STRC segregates exposure to the Bitcoin market between two groups of investors, where the preferred stockholders will earn their yields, but the common stockholders will enjoy the profits from the gains in Bitcoin prices.
The security has been referred to as “Digital Credit,” which refers to yield-bearing securities supported by corporate Bitcoins as compared to regular operational flows of cash.
Notably, however, STRC is not directly backed by any Bitcoin. It continues to be a preferred stock whose value is reliant on the general performance and access to markets of Strategy.
Risks associated with the project
The introduction of the STRCx market by Kamino can be viewed as an effort geared towards introducing yield-bearing assets into DeFi environments, where the user is able to earn dividends while staking the asset as collateral to borrow from the protocol.
Like any tokenized security and DeFi lending platform, users have to take risks in terms of counterparty risk due to the Strategy project, vulnerabilities of the smart contract, oracle failure, and high volatility of the stock and cryptocurrency market.
This also adds another intersection point of traditional finance and decentralized finance on the Solana platform.
Also Read: VanEck Brings BNB to Wall Street With First U.S. Spot ETF
