Strategy’s preferred stock ticker STRC has climbed into one of the top holdings in BlackRock’s iShares Preferred and Income Securities ETF (PFF), placing it among the largest positions in a $14 billion fund that tracks 451 preferred securities.
The development marks a notable shift for a crypto-adjacent issuer inside one of the most widely held preferred-stock ETFs in the United States. BlackRock’s year-end fact sheet for PFF, dated December 31, 2025, lists “MICROSTRATEGY PERP STRETCH PRF SE” at 1.50% of the fund’s portfolio, placing it fourth among all holdings.
TLDR KEYPOINTS
- STRC ranks fourth in PFF’s top-holdings table, behind Boeing, Wells Fargo Series L, and a BlackRock treasury fund.
- PFF manages $14.045 billion across 451 preferred securities, giving STRC significant ETF visibility.
- Independent data confirms the position: Investing.com lists STRC at 1.49% of PFF, and Twelve Data shows PFF holding 2.1 million STRC shares worth $208.6 million.
Why STRC’s Rise in PFF Matters
In PFF’s top-holdings table, STRC sits behind only Boeing, Wells Fargo Series L, and BLK CSH FND TREASURY SL AGENCY. For a preferred security that only began trading in late July 2025, reaching the fourth-largest position in a fund of this scale is a rapid ascent.
Strategy priced 28,011,111 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock at $90 per share on July 25, 2025, with settlement on July 29, 2025. The instrument carries cumulative variable-rate dividends on a $100 stated amount, with an initial monthly dividend rate of 9.00% per annum beginning August 31, 2025.
That generous yield structure helps explain why a passive income-focused ETF like PFF accumulated a meaningful position so quickly. The 9% starting rate on a $100 par value stands out in a preferred market where many legacy issues carry lower fixed coupons.
What BlackRock’s PFF Exposure Signals for STRC
PFF is not a niche product. The fund held $14.045 billion in net assets as of the December 31, 2025 fact sheet, making it one of the largest preferred-stock ETFs available to U.S. investors. Inclusion as a top holding in a fund of this size means STRC is now a default allocation for any investor or institution that buys PFF for preferred-stock exposure.
Independent sources corroborate the position. Investing.com’s PFF holdings page lists Strategy Inc Preferred Series A at 1.49% of the portfolio, closely matching BlackRock’s year-end disclosure. Twelve Data’s STRC holders page shows PFF held 2.1 million shares valued at $208.6 million as of January 31, 2026, representing 7.4% of STRC’s outstanding float.
That ETF visibility creates a feedback loop. As PFF draws inflows, it mechanically buys more of its top holdings, including STRC. For a company like Strategy, which has built its corporate identity around Bitcoin accumulation and crypto treasury strategy, having a preferred instrument anchored inside a BlackRock flagship product adds a layer of institutional legitimacy.
The broader trend of traditional financial products absorbing crypto-linked exposure continues to accelerate. Franklin Templeton’s recent acquisition of 250 Digital to build an institutional crypto unit reflects the same convergence: legacy asset managers are steadily increasing their touchpoints with digital-asset-adjacent issuers.
What Investors Will Watch Next
The key question is whether STRC maintains or improves its top-four ranking in PFF as the fund rebalances through 2026. A preferred security’s weight in PFF depends on market value, issuance size, and index eligibility criteria, all of which can shift quarter to quarter.
Market attention typically increases when a ticker becomes more prominent inside a flagship ETF product. STRC’s high starting dividend rate and its ties to Strategy’s Bitcoin-focused balance sheet make it an unusual holding in a fund dominated by bank and utility preferreds.
Investors tracking large institutional capital movements in both crypto and traditional markets will want to monitor whether PFF’s STRC allocation grows or stabilizes. The next BlackRock fact sheet update, expected to reflect March 31, 2026 data, will provide the clearest signal of STRC’s trajectory inside the fund.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
