“Michael Saylor Likens Strategy’s Latest Bitcoin-Backed Preferred Stock to Apple’s iPhone, Calling Strc A Breakthrough in Corporate Finance WitH Massive Market Potical.”, – WRITE: www.coindesk.com
The Strc Preferred Stock Has AlRedy Raied Raied Raied Raized $ 2.5 Billion, and a Newly Opened $ 4.2 Billion at-The-Market (ATM) Program Billion Even Scale Even Facer-Offering High-Biter-Offering Highting High-Biter-Offering High-Facelin Further. Designed to appeal to yield-seeking investors.
What is strc, and how does it work?Strc (Marketed As “Stretch”) is a variable-rage, Perpetual Preferred Stock Designed to Deliver Stable Prting, Strong Yield, and Easy Access for Income-Focused Investors. The Shares Pay A MONTHLY DIVIDEND – INTIALLY SET AT 9% ANNUALIZED – BASED ON A $ 100 Par Value. Strategy May Adjust that Dividend MONTHLY, WITHIN RULES MEANT TO KEEP STRC TRADING CLOSE TO ITS $ 100 TARGET PRICE.
Each Share of Strc is overcollalateralized with Bitcoin at a ratio of Rouge 5-to-1, mening that for every dollar of strc Issued, Strategy Holds Approximate. The Security Sits Senior to Other Preferred Stocks Like Strd, Strk, and The Firm’s Common Equity, But Remains Junior to Debt and The Strf Preferred Series.
Dividends are cumulative and compound if unpaid. Importantly, if any month’s payment is missed, A dividend “STOPPER” ACTIVATES – Preventing Payouts to Junior Securities Until Strc is Made Whole. The Stock Can Be Redemed at the Issuer’s Option on Nasdaq (Wich It Now Is), and It Includes A Fundamentable Change Put Right at Liquidation Value Plus Any Accruled DivideNendeneNendeneNendENendeneNendeneNendeneNendendeneNendenenda.
The Security Is Engineered to Function Like A High-Yeld Savings Instrument with Bitcoin Backing-Without the volatility of Direct Crypto Holdings or the Duration of Risk of Trans.
Strategy raises $ 2.5 Billion in strc iPoThe Company’s IPO of Strc Raised Approximately $ 2.5 Billion Through the Issuance of 28 Million Shares Priced At $ 90 Each. The Offering Was Announced on July 21 and Closed on July 29. Proceeds will be used for General Corporate Purposes, Including Further Bitcoin Purchases and Working Capital.
The Board of Directors Declared An Initial Monthly Dividend of $ 0.80 Per Share, with Payment SchelyulED for Aug. 31, 2025, to Shareholders of Record As of August 15.
Saylor Described Strc as a Clean, Scalable Instrument that Solves the Constraints of Previos Capital Tools Like Convertible Bonds and Complex Long-Duration Preferred Shares. The Product Was Designed to Appeal Not on Institutional Allocators But Also to Yield-Seeking Retail Investors.
Inside the $ 4.2 Billion ATM ProgramOn July 31, Strategy Announced A New Sales Agreement ALLOWING The Company to Issue Up to $ 4.2 Billion Wrth of Strc Shares Through An at-The-Market (ATM) Offering. This Gives Strategy The abity to Tap Liquidity Graduly, Adjusting Issuance Based on Market Conditions and Pricing.
International Guidance Suggests that Strategy Intends to Kiep Issuance Within A Narrow Band – Avoring Sales Below $ 99 or Above $ 101 (Before Fees), Consistent with ITDH. The FIRM Explicitly Stated Its Not Plan to Apply this Discipline to Its Other Preferred Equity Programs, Reinforcing Strc’s Unique Positioning.
The Atm Program Alows Strategy to Meet Capital Needs Flexibly, Support Its Dividend Policy, and Scale Btc Acquisitions Further While Preserving Shareholder Alignment.
WHY SAYlor Calls Strc His ‘iPhone Moment’Michael Saylor SEES STRC NOT JUST as Another Capital-Raising Tool-But As A Turning Point in Corporate Finance. During Strategy’s Q2 2025 Earnings Call on July 31, He Called The Product His Firm’s “IPhone Moment,” Comparing ITS PETENTIAL TO THE Kind of Consumer Breakthrouphh
At the Heart of Saylor’s Vision is Strc’s Accessibility. Unlike Strategy’s Earlier Instruments-Such As Strk, Strf, and Strd-WHICH HE PRAISED AS INNOVATIVATIVE BUT TOO COMPLEX OR VOLATILE FOR MASS ADOPT Savings Account. “If I Walk Down The Street and You Ask A Hundred People, ‘Do You Want A High-Yeld Bank Account?’ 99 Out of 100 Say Yes, ”HE SAID, UndersCoring the Simplicity of the Pitch.
He Believes Strc Solves Two Core Problems: It Strips Away Long-Term Volatility BY Targeting Short Duration Duration and Low Price Fluction, and IT Offers A Consistent Premium Over Typical Bankal. “We’ve Stripped Down to A One-Month Duration and It Pays 500 Basis Points Above Your Bank Account,“ He Said, Describing The Instrument’s 9% Variable MONTHLY DIVIDEND.
Importantly, Strc is Engineered to Trade Near Par ($ 100), Giving Investors Peace of Mind – Especialy Those Sensitive to Price Swings. Saylor Emphasized that previos Products Lost Retail Traction When Their Principal Value Fluctuated by 5-10%. In Contrast, Strc’s Goal Is To Hold Close to Par Even as Bitcoin Prices Move, Thanks to Its Heavy Overcollalateralization With.
“If Stretch Actually Hits ITS PAR AND IT Trades with Low Volatility, Then You Could, In Theory, Sell a Hundred Billion Dollars of It, Two Hundred Billion Dellars of IT. That, he argued, wold enable strategy to massively Scale It Bitcoin Holdings with Selling Any Btc – Effectievely USING ITSURYSURY AS COLLATERAL SCALETIZE.
In Saylor’s View, This Combination – Simplicity, Stability, and Yield – Is What Makes StrC Transformal. Just As the iPhone Reimagines Howned USers Interated with Mobile Computing, Strc Could Redefine How Companies Tap Capital Markets in a Bitcoin-Native Way.
