Strategy Introduces STRC Preferred Stock for Institutional-Grade Credit Market

Michael Saylor's company Strategy has introduced a new instrument called STRC, or 'Stretch', a perpetual preferred stock that pays a monthly cash dividend. The security is designed to trade near a $100 par value and offers investors a double-digit yield tied to the world's largest corporate Bitcoin holder.

The key feature of STRC is its combination of equity and debt characteristics, allowing holders who want to exit to sell shares in the secondary market rather than requiring Strategy to redeem them. This reduces the pressure on the company compared to convertible notes, which must be repaid at maturity.

Strategy has already issued more than $10 billion worth of STRC and plans to use it as a core fundraising tool to buy Bitcoin. The company's holdings have grown significantly since its first Bitcoin buying spree in 2020, with Strategy now holding over 843,738 BTC.