Michael Saylor’s Strategy Rolls Out $100 Bitcoin ‘Stretch’ Preferred Stock With 9% Yield
Main Idea
Michael Saylor’s Strategy is launching a $500 million preferred stock offering (STRC) to boost Bitcoin holdings, offering a 9% annual dividend, but critics compare its structure to a pyramid scheme due to reliance on new investor inflows.
Key Points
1. Strategy plans to sell 5 million shares of STRC preferred stock at $100 each, with proceeds aimed at further Bitcoin accumulation.
2. STRC offers a 9% annual dividend, paid monthly, with mechanisms to keep share prices near $100, but lacks traditional equity or debt protections.
3. Critics argue STRC resembles a pyramid scheme, as its returns depend on continuous new investor inflows and could falter if Bitcoin's price declines.
4. Strategy’s Bitcoin reserves total 601,550 BTC, acquired at an average price of $71,268, with a 2025 yield reportedly reaching 20.2%.
5. The firm raised $472.3 million recently, mostly from common stock, alongside other preferred instruments (STRK, STRF, STRD) offering 8%-10% dividends.
Description
Strategy, the digital asset-focused firm led by Michael Saylor and known as the largest corporate holder of Bitcoin, is launching a new financial product designed to raise $500 million for further BTC accumulation. The company announced plans to conduct an initial public offering of a new class of preferred stock called the Variable Rate Series A Perpetual Stretch Preferred Stock, or STRC. Strategy Unveils $500M Preferred Stock Offering to Boost Bitcoin Holdings According to the filing with the ...
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