Strategy, the bitcoin-centric enterprise formerly recognized as MicroStrategy, has unveiled a pioneering financial instrument—Perpetual Stretch Preferred Stock (STRC)—that Executive Chairman Michael Saylor touts as the firm’s transformative “iPhone moment.” Since its launch in late July, STRC has already amassed $2.5 billion, with a newly introduced $4.2 billion at-the-market (ATM) program poised to amplify its reach further. This innovative offering is fortified by bitcoin, designed to deliver attractive dividends, and is particularly aimed at investors on the hunt for yield.
Navigating the New Financial Landscape
The STRC, marketed under the catchy moniker “Stretch,” is a variable-rate, perpetual preferred stock. It’s crafted to provide stable pricing and robust yields for income-focused investors eager for indirect bitcoin exposure. With an initial monthly dividend set at a 9% annualized rate, based on a $100 par value, STRC offers a compelling proposition. To maintain its allure, Strategy has built-in mechanisms allowing for monthly dividend adjustments, ensuring the stock trades close to its target price.
Each STRC share is overcollateralized with bitcoin at a 5-to-1 ratio, ensuring substantial backing. “This isn’t just another preferred stock—it’s a financial instrument with the strength of bitcoin behind it,” noted crypto analyst Sarah Lane. The security also features a dividend “stopper” that halts payouts to junior securities if any month’s payment is missed, underlining its priority status among Strategy’s preferred stocks, albeit still junior to debt and the STRF series.
A Closer Look at the $4.2 Billion ATM Initiative
In a move to further capitalize on STRC’s market potential, Strategy announced a new $4.2 billion ATM offering on July 31. This program grants the company the flexibility to issue shares incrementally, adapting to market dynamics and ensuring the price remains within a narrow band of $99 to $101. “This ATM program is a strategic masterstroke,” commented financial strategist Mark Caldwell. “It allows Strategy to harness liquidity without destabilizing market prices.” As explored in Strategy Looking to Raise $4.2B Via Preferred Stock to Stack More Bitcoin, this initiative underscores the firm’s aggressive bitcoin acquisition strategy.
The ATM initiative is designed not only to meet immediate capital requirements but also to bolster Strategy’s ambitious bitcoin acquisition plans. Unlike its other preferred equity programs, the firm is committed to maintaining the discipline of this narrow trading range for STRC, reinforcing its unique market positioning.
Redefining Corporate Finance
Michael Saylor’s comparison of STRC to the iPhone isn’t mere hyperbole. He envisions STRC as a groundbreaking tool in corporate finance, offering unparalleled accessibility. “Unlike our earlier products, which were innovative yet too complex, STRC is straightforward—like a high-yield savings account,” Saylor explained during Strategy’s Q2 2025 earnings call. By targeting short durations and minimizing price fluctuations, STRC offers a consistent premium over traditional bank yields, making it an attractive option for retail and institutional investors alike. This follows the recent Massive $2.4B Bitcoin Purchase With Preferred Stock Sale Proceeds, highlighting Strategy’s commitment to expanding its bitcoin holdings.
The instrument’s design seeks to trade near par value ($100), providing investors with stability even as bitcoin prices fluctuate. “The beauty of STRC is its potential to expand exponentially without liquidating bitcoin holdings,” Saylor remarked. He envisions a future where Strategy could potentially scale its bitcoin reserves significantly, leveraging its treasury as collateral.
Looking Ahead
The introduction of STRC marks a pivotal moment in Strategy’s evolution, with implications that could ripple across the financial markets. As the firm continues to navigate this new terrain, questions remain about the long-term sustainability of this model and its broader impact on the cryptocurrency landscape. Will STRC’s promise of stability and yield redefine how companies engage with capital markets in a bitcoin-native context? Only time will tell, but for now, Strategy’s “iPhone moment” is one to watch.
Source
This article is based on: Why Michael Saylor Calls Strategy’s STRC Preferred Stock His Firm’s ‘iPhone Moment’
Further Reading
Deepen your understanding with these related articles:
- Michael Saylor’s Strategy Raises $2.5B in Record Stock Offering to Buy More Bitcoin
- Michael Saylor Touts Bitcoin-Tied Preferred Stock as ‘High-Yield’ Option for Retirees
- Strategy Earned $10B in Q2 on Back of Bitcoin Price Gain
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
