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The Weekly Bitcoin Update · Issue #2

Free Money with STRC

Sent Tuesday, April 21, 2026

Hello friends!

I know it's been a while since Issue #1 — over the past two months life has been crazy and distracting. Quick housekeeping: going forward this update will hit every 2 weeks instead of weekly so I can keep the quality up and not miss sends.

There's a lot to cover on the Iran conflict, how Bitcoin held through it, and what it all means for Bitcoin as an asset class. I'm saving that deep dive for the next issue.

Today I want to talk about STRC — and why you might have free money sitting on the table. This one is especially for homeowners with equity and for anyone with a brokerage account who isn't already using margin. Pay attention.

One ground rule before we dive in: don't trust, verify. I'll link everything. Look it up. Ask questions.

The Product: STRC in One Minute

STRC is a preferred equity issued by Strategy. A few things make it different from anything traditional finance has produced before:

  • Pegged at $100. Strategy issues new shares when demand pushes the price up, keeping it anchored.
  • Pays ~11.5% annual dividend, monthly — moving to biweekly soon, once approved (announcement).
  • Tax-deferred for roughly 10 years. You pocket the full distribution now and settle up later.
  • ~2 years of cash dividend reserves set aside to keep payments flowing even if things get ugly.
  • Lowest volatility of any high-yield product I've seen. Even through the last few weeks — war breaking out and resolving — STRC barely moved.

More on STRC mechanics →

Now the play.

The Homeowner Play: Use Equity You Already Have

If you own a home and have equity built up, you can turn that equity into a monthly income stream without selling anything. A realistic example:

  • Bought your home 10 years ago for $800k with 20% down on a 30-year fixed
  • Current value: ~$900k
  • Mortgage balance remaining: ~$500k (you've paid down ~$140k of principal — early mortgage years are interest-heavy)
  • Equity: ~$400k

Take out a HELOC on half of that equity — $200k — leaving you a comfortable buffer. National average HELOC rate as of April 2026 is ~7.1% (Bankrate).

 Annual
STRC dividend at 11.5% on $200k+$23,000
HELOC interest at 7.1% on $200k–$14,200
Net in your pocket+$8,800/yr (~$733/mo)

That's ~$733 a month landing in your account, tax-deferred, just for doing the setup work. No job. No new savings. Just using capital you already have.

The Portfolio Play: Same Idea, Using Margin

If you have a brokerage account with margin available, the math looks almost identical — and margin rates tend to be lower than HELOC rates (Robinhood Gold is ~5%, Interactive Brokers is lower on bigger balances).

Example: $200k margin buying power, use half ($100k) conservatively.

 Annual
STRC dividend at 11.5% on $100k+$11,500
Margin interest at ~6% on $100k–$6,000
Net in your pocket+$5,500/yr (~$460/mo)

Same playbook: set up the trade, pocket the spread, let it run.

And if you don't need the monthly cash? Reinvest it automatically. At 11.5% compounding monthly, the snowball gets big fast.

Why This Matters

Prices are going up everywhere — at the pump, at the grocery store, in your utilities. You can feel it. STRC is the first product I've seen in my lifetime that pairs this much stability with this much yield. Used thoughtfully, it can take real pressure off your monthly budget in a world where the dollar keeps buying less.

A few honest caveats

Don't trust, verify.

  • STRC's dividend is variable — the ~11.5% is the current rate, not a guarantee.
  • The $100 peg is maintained by Strategy issuing shares, not by law. In extreme conditions, it could drift.
  • Borrowing to invest amplifies both gains AND losses. Margin accounts can get called; HELOCs put your house in the chain.
  • Do the math with YOUR numbers. Talk to a professional if you're unsure.

This isn't advice — it's how I'm thinking about it. Verify everything.

Your Equity Isn't Gone — It Just Moved

One more thing worth saying: using your HELOC for this doesn't mean your home equity is gone. It just moved — from your house into STRC. If a big cash need ever comes up, instead of tapping the HELOC, you can sell the STRC. You end up in the same place.

Know Someone Who Should Read This?

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Don't trust, verify.  |  @JoinTeamBitcoin

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Nothing in this newsletter is financial advice. For educational purposes only. Always do your own research and consult a qualified financial advisor before investing.