Michael Saylor Describes STRC Preferred Stock as His Firm’s ‘iPhone Moment’
Strategy (MSTR) has launched its Perpetual Stretch Preferred Stock (STRC), raising $2.5 billion through an IPO of 28 million shares priced at $90 each. The offering aims to attract yield-seeking investors with monthly dividends backed by bitcoin.
Key details of STRC include:
- Variable-rate, perpetual preferred stock designed for stable pricing and strong yields
- Initial dividend set at 9% annualized based on a $100 par value
- Overcollateralized with bitcoin at a 5-to-1 ratio
- Cumulative and compound dividends, with a “stopper” preventing payouts to junior securities if payments are missed
- Redeemable once listed on Nasdaq
The recent ATM program allows Strategy to issue up to $4.2 billion in STRC shares, maintaining a target price around $100. This flexibility supports capital needs and further BTC acquisitions while aligning with shareholder interests.
Michael Saylor refers to STRC as his firm's "iPhone moment," highlighting its potential to redefine corporate finance. He emphasizes STRC's accessibility, low volatility, and consistent yields, positioning it as a more appealing option than previous complex financial instruments.
Overall, STRC's structure aims to provide investors with a stable investment vehicle tied to bitcoin without the risks associated with direct cryptocurrency holdings.