Saylor Unveils Strategy for Turning Bitcoin into Dollar Income

Michael Saylor, executive chairman of Strategy Inc. (Nasdaq: MSTR), explained how his company generates dollar income while accumulating Bitcoin. According to Saylor, Bitcoin itself pays no coupon, but Strategy pays dividends under its securities terms. The distinction separates direct ownership of Bitcoin from an investment in Strategy's income-producing shares.

Strategy uses a financing structure that offers two distinct investments: MSTR common shares provide ownership in the business, while STRC investors seek dollar income and reduced price volatility. STRC is preferred stock, ranking ahead of common shares for dividends and proceeds in liquidation. Saylor argues that MSTR holders accept potentially larger gains and losses from Bitcoin exposure, which helps support steadier income for STRC investors.

Strategy documented twice-monthly STRC distributions in a Sept. 1 filing with the Securities and Exchange Commission (SEC). The rate adjusts monthly to encourage trading near its $100 stated value. Adjustments can reduce sensitivity to interest-rate changes, but the instrument has no maturity date or guaranteed principal repayment.