Strategy (Mstr)The corporate entity focused on Bitcoin previously known as Microstrategy, launched its Preferred stock of perpetual stretching (STRC) At the end of last month: the executive president of the offer, Michael Saylor, described as the “iPhone moment” of the company.
The preferred Strc shares have already raised $ 2.5 billion, and a newly opened $ 4.2 billion in the market (ATM) The program could extend its scale even more, offering high performance dividends backed by Bitcoin and designed to attract investors looking for performance.
What is Strc and how does it work?
Strc (commercialized as “stretching”) It is a preferred perpetual and variable rate action designed to offer stable prices, strong yield and easy access to income -centered investors looking for indirect exposure to Bitcoin. The shares pay a monthly dividend, established in annualized 9%, based on a nominal value of $ 100. The strategy can adjust that dividend monthly, within the rules destined to maintain STRC operating near its target price of $ 100.
Each STRC part is overlaterized with Bitcoin in a ratio of approximately 5 to 1, which means that for each dollar of STRC issued, the strategy has approximately five dollars in BTC. Security is in the forefront of other preferred actions such as Strd, Strk and the common heritage of the company, but remains junior of the debt and the preferred Strf series.
Dividends are cumulative and compounds if they are not paid. It is important to highlight that if the payment of some month is lost, a “cap” dividend is activated, avoiding payments to junior values until STRC is done everything. The action can be redeemed to the issuer’s option once it is listed in Nasdaq (What is it now)and includes a fundamental change could in the liquidation value plus any accumulated dividends.
Security is designed to function as a high -performance savings instrument with a bitcoin support, without the volatility of direct cryptographic holdings or the risk of duration of traditional favorites.
The strategy collects $ 2.5 billion in Strc IPO
The company’s OPI of the company raised approximately $ 2.5 billion through the issuance of 28 million shares with a price of $ 90 each. The offer was announced on July 21 and closed on July 29. Income will be used for general corporate purposes, including other purchases of Bitcoin and working capital.
The Board of Directors declared an initial monthly dividend of $ 0.80 per share, with the payment scheduled for August 31, 2025, to the shareholders registered as of August 15.
Saylor described STRC as a clean and scalable instrument that resolves the restrictions of previous capital tools such as convertible bonds and preferred long -term preferred shares. The product was designed to appeal not only to institutional assignments but also to retail investors seeking performance.
Within the atm program of $ 4.2 billion
On July 31, the strategy announced a new sales agreement that allows the company to issue up to $ 4.2 billion in STRC shares through a market in the market (ATM) offering. This gives the strategy the ability to take advantage of liquidity gradually, adjusting the issuance based on market conditions and prices.
The internal guide suggests that the strategy intends to maintain the broadcast within a narrow band, avoiding sales below $ 99 or more than $ 101 (Before rates)According to its objective of maintaining a stable negotiation price of $ 100. The firm explicitly declared that it does not plan to apply this discipline to its other preferred capital programs, which reinforces the unique positioning of STRC.
The ATM program allows the strategy to meet capital needs in a flexible way, support its dividend policy and climb BTC acquisitions even more while preserving the alignment of shareholders.
Why does Saylor call Strc his ‘iPhone’ moment?
Michael Saylor sees STRC not only as another capital collection tool, but as a turning point in corporate finances. During the profit call of the second trimester of strategy 2025 on July 31, he called the product the “iPhone moment” of his company, comparing its potential with the type of consumer advance that redefined an entire industry.
In the heart of Saylor’s vision is Strc’s accessibility. Unlike the previous instruments of the strategy, such as Strk, Strf and Strd, which praised as innovative but too complex or volatile for mass adoption, STRC is designed to function more as a savings account with performance. “If I walk down the street and ask one hundred people: ‘Do you want a high performance bank account?’ 99 of 100 say yes, ”he said, underlining the simplicity of the field.
He believes that STRC solves two basic problems: it eliminates long -term volatility by pointing to short duration and low price fluctuation, and offers a consistent premium on typical bank yields. “We have reduced to a duration of one month and pay 500 basic points above its bank account,” he said, describing the variable monthly dividend of 9% of the instrument.
It is important to highlight that STRC is designed to trade near the pair. ($ 100)giving investors tranquility, especially those sensitive to price changes. Saylor emphasized that previous products lost retail traction when their main value fluctuated by 5-10%. On the contrary, the goal of StRC is to stay close to the torque, even as Bitcoin prices move, thanks to their heavy overlaterization with BTC.
“If stretching really reaches its pair and quotes with low volatility, then it could, in theory, sell one hundred billion dollars, two hundred billion dollars,” he told analysts. That, he argued, would allow the strategy to massively climb his Bitcoin holdings without selling any BTC, effectively using his treasure as a guarantee to monetize liquidity at a retail scale.
In Saylor’s opinion, this combination, simplicity, stability and performance, is what makes Strc transform. Like the iPhone, it reinvented how users interacted with mobile computing, STRC could redefine how companies take advantage of capital markets in a native way of Bitcoin.
