Michael Saylor’s firm, Strategy, has launched a bitcoin-backed preferred stock—STRC—that is being compared to Apple’s iPhone for its market-shifting potential. This innovative financial product is aimed at offering high yield, price stability, and broad investor appeal.
What Is STRC Preferred Stock?
STRC (Perpetual Stretch Preferred Stock) is a variable-rate, bitcoin-overcollateralized security designed for yield-focused investors. Each share has a $100 par value and pays a monthly dividend, starting at 9% annualized, with flexibility to adjust payouts while maintaining price stability. Strategy backs each STRC share with five times its value in bitcoin, aiming to reduce volatility and maintain investor trust.
STRC trades close to par value, making it a stable income tool
Unlike volatile crypto assets, STRC is built to maintain a narrow trading band between $99 and $101. This pricing discipline ensures that holders experience minimal fluctuations in principal, a key advantage for conservative or income-seeking investors.
Record $2.5 Billion Raised in STRC IPO
The initial offering raised $2.5 billion through 28 million shares priced at $90 each. Proceeds will support bitcoin acquisitions and general corporate use. A $0.80 dividend per share will be paid monthly, with the first payout scheduled for August 31, 2025.
$4.2 Billion ATM Program Expands Potential
Strategy introduced a $4.2 billion at-the-market (ATM) sales program that allows for gradual, market-aligned issuance of STRC shares. This flexible capital strategy enables the firm to scale BTC exposure further without increasing financial risk or market pressure.
Why It’s Called the ‘iPhone Moment’ of Bitcoin Finance
Saylor compared STRC to the iPhone’s disruptive impact, calling it a scalable, easy-to-understand investment tool. STRC solves key barriers: it delivers high yield without locking up funds in long-term bonds or exposing investors to crypto’s daily swings.
With overcollateralization, a short-duration structure, and consistent yield above bank accounts, STRC is poised to attract both institutional and retail capital at scale.
Conclusion
STRC represents a new chapter in bitcoin treasury monetization — a bridge between traditional finance and crypto innovation. If it continues to perform as designed, it could unlock hundreds of billions in future bitcoin-backed funding.
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Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.