Michael Saylor Compares Strategy's STRC Preferred Stock to Apple's iPhone
Michael Saylor describes the introduction of Strategy's Bitcoin-backed preferred stock, STRC, as a transformative moment comparable to the launch of the iPhone, emphasizing its potential in corporate finance.
Key Points:
- Strategy has raised $2.5 billion from the IPO of their BTC-backed, variable-rate preferred stock, STRC.
- Saylor referred to STRC as his firm’s “iPhone moment,” emphasizing its role in providing scalable, stable access to capital markets for organizations holding bitcoin.
- The company aims to develop preferred equity platforms that will serve a wide range of investors with yield-bearing solutions.
Overview
Strategy (MSTR), the bitcoin-centric corporate entity previously known as MicroStrategy, launched its Perpetual Stretch Preferred Stock (STRC) recently, which Saylor identifies as a groundbreaking move similar to the introduction of the iPhone.
The STRC offering has already attracted $2.5 billion, with a $4.2 billion at-the-market program poised to elevate its funding further, complete with high-yield dividends backed by bitcoin, specifically targeted at investors interested in income.
About STRC
STRC, marketed as “Stretch,” is aimed to deliver stable prices and accessible yields for investors looking for indirect bitcoin exposure, paying monthly dividends starting at an annual rate of 9%. Each share is backed by bitcoin at a ratio of roughly 5-to-1, ensuring a robust collateral structure.
This security’s features promise to provide investors with consistent dividends while minimizing volatility, aiming for stability akin to traditional savings accounts.
Saylor’s Vision for STRC
Saylor perceives STRC as a pivotal financial tool capable of altering the capital market landscape. He highlighted its accessibility, claiming it addresses the demand for stable, high-yield investments among retail investors, aiming to standardize its market presence much like the iPhone revolutionized mobile technology.
