Why Michael Saylor Calls Strategy's STRC Preferred Stock His Firm's 'iPhone Moment'

Key Points

1. STRC is a variable-rate, perpetual preferred stock offering indirect bitcoin exposure, with a monthly dividend initially set at 9% annualized and overcollateralized with bitcoin at a 5-to-1 ratio.

2. The STRC IPO raised $2.5 billion, with proceeds intended for general corporate purposes, including further bitcoin purchases and working capital.

3. Strategy announced a $4.2 billion at-the-market (ATM) program to issue additional STRC shares, allowing flexible capital raising while maintaining a stable trading price around $100.

4. Saylor describes STRC as a breakthrough due to its simplicity, stability, and yield, likening it to the iPhone's impact on mobile computing and emphasizing its appeal as a high-yield savings alternative.

5. STRC is designed to trade near its $100 par value, minimizing price volatility and providing a scalable way for Strategy to increase its bitcoin holdings without selling BTC.