Strategy launches Bitcoin-backed preferred stock with 9% return
- STRC Action Targets Money Market Fund Capital
- Strategy product offers income tied to Bitcoin
- Traditional investors seek indirect exposure to Bitcoin
Treasury firm Strategy announced a new class of Bitcoin-linked perpetual preferred stock, called Series A STRC (Preferred Stock of Variable Rate), expected to attract an estimated $7 trillion in funding from traditional funds. The proposal includes the issuance of 5 million shares at a par value of $100 each, subject to regulatory approval and market conditions.
Strategy is offering $STRC (“Stretch”), a new Perpetual Preferred Stock via IPO, to select investors. $ MSTR pic.twitter.com/LaQSrrMsEg
— Michael Saylor (@saylor) July 21, 2025
With an initial annual dividend of 9%, paid monthly and subject to board approval, STRC seeks to offer a more attractive yield alternative compared to money market funds, whose returns hover around 4,25%. Even though it's a variable rate, Strategy has established a reduction limit of just 25 basis points per adjustment, offering investors greater predictability.
Joe Consorti, head of growth at Theya Bitcoin, highlighted that the STRC is a clear strategy for capturing some of the capital allocated to conventional fixed-income instruments. "Strategy's new variable-rate preferred STRC has a starting yield of 9% and targets money market funds. A market of $7,05 trillion, about 25% of all U.S. Treasuries, yields only ~4,25%."
Strategy's new variable rate preference $STRC has a 9% initial yield, and is targeting money market funds.
A $7.05 trillion market, about 25% of all US Treasuries, yielding just ~4.25%.
Bitcoin is about to swallow the fixed income market. https://t.co/vhUDEpJdkR pic.twitter.com/oulrRugBYV
— Joe Consorti ⚡️ (@JoeConsorti) July 21, 2025
In addition to the return, the product has customized redemption clauses: Strategy can buy back shares for $101 plus accumulated dividends, while investors are entitled to the nominal value in the event of a "fundamental change."
The new issuance joins Strategy's other fixed-income initiatives with Bitcoin exposure, such as STRK—a convertible series with a fixed 8% dividend yield and the possibility of conversion into common shares—and STRF, structured with a 10% cumulative yield. Also part of the portfolio is STRD, which promises 10% annual yield with no outstanding dividends.
According to analyst Adrian Cercenia, the company is building a "yield curve" with different products tailored to investors' risk appetite. He believes the approach aims to capture stagnant liquidity resources and indirectly redirect them to the Bitcoin ecosystem.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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