# Treasury & Collateral Risk

## STRC Dividend Risk

BUCK's yield depends on STRC ROC dividends being paid to Buck's Treasury. If dividends were reduced or suspended, BUCK yield would decrease — but your BUCK value would not decrease.&#x20;

**Why dividend suspension is unlikely:**

* Dividends are contractual preferred equity payments, not discretionary
* $2.25B in cash reserves covers 77.4 years of dividend payments
* Preferred dividends must be paid before common dividends
* STRC is NASDAQ-listed with SEC oversight

In a Strategy solvency scenario, preferred shareholders (including Buck) have priority over common stockholders.

## Concentration Risk

Buck's treasury is concentrated in STRC. This means simpler verification and a single transparent yield source, but no diversification across asset classes. This trade-off is mitigated by Strategy's position as the world's largest corporate Bitcoin holder ($60B+ BTC, $2.25B cash reserves).

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*Next:* [*Oracle & Market Hours Risk →*](https://buck-3.gitbook.io/buck-docs/safety-and-risk/risks/risks-oracle)
