Strategy (Mstr)The Bitcoin-focused business unit previously known as microstratey launched its Eternal stretch preferred stock (Strc) Late last month – an offer that offers executive chairman Michael Saylor has described as the company’s “iPhone moment.”
STRC-Published Shares have already collected $ 2.5 billion and a newly opened $ 4.2 billion dollars on market (Atm) The program could extend its scale further-offering yield with high yields supported by Bitcoin and designed to appeal to dividend-seeking investors.
What is the strc and how does it work?
Strc (marketed as “stretch”) is a variable interest rate, eternally preferred stock designed to deliver stable pricing, strong yield and easy access for income-focused investors seeking indirect Bitcoin exposure. The shares pay a monthly dividend – equally set to 9% annually – based on a $ 100 face value. Strategy can adjust this dividend monthly within rules intended to keep Strc trading close to its $ 100 target price.
Each proportion of STRC over collaterales with bitcoin in a ratio between approx. 5 to 1, which means that the strategy for each dollar issued by STRC has strategy approx. Five dollars value of BTC. Security sits senior to other preferred shares such as Strd, Strk and the company’s joint equity, but remains junior for debt and STRF -Performed series.
Yield is cumulative and composed if they are unpaid. It is important that if one month’s payment is missed, an “stop” is activated – preventing payouts to junior securities until the STRC is made full. The stock can be redeemed at the issuer’s option once stated on NASDAQ (as it is now)And it includes a fundamental change that has been set right by liquidation value plus any subsequent dividends.
Security is designed to act as a high-interest saving instrument with Bitcoin backing-backing volatility in direct crypto holdings or the duration risk of traditional preferred.
Strategy is collecting $ 2.5 billion in Strc IPO
The company’s IPO of Strc traveled approx. $ 2.5 billion through the issuing of 28 million shares to $ 90 each. The offer was announced on July 21 and closed on July 29th. Revenue will be used for general business purposes, including additional Bitcoin purchases and working capital.
The Board of Directors declared a first monthly dividend of $ 0.80 per year.
Saylor described Strc as a clean, scalable instrument that solves the limitations of previous capital tools such as convertible bonds and complex preferred shares of prolonged. The product was designed to appeal not only to institutional allocation, but also to yield-seeking retail investors.
Inside the $ 4.2 billion ATM program
On July 31, the strategy announced a new sales agreement that allows the company to issue up to $ 4.2 billion STRC shares through a market (Atm) Offer. This gives strategy the opportunity to press liquidity gradually, adjusting the issue based on market conditions and pricing.
Internal guidance suggests that the strategy intends to hold issuance within a narrow tape – to avoid sales below $ 99 or over $ 101 (before fees)in accordance with its goal of maintaining a stable $ 100 trading price. The company explicitly stated that it is not planning to apply this discipline to its other preferred stock programs, which strengthens Strc’s unique positioning.
The ATM program allows strategy to meet capital needs flexibly, support its dividend policy and scale BTC acquisitions further, while the shareholder’s adjustment is preserved.
Why Saylor calls Strc its ‘iPhone -Moment’
Michael Saylor does not only see Strc as another capital collection tool-but a turning point in corporate financing. During the Q2 2025 of the strategy -July 31, he called the product, his company “iPhone moment”, compared its potential to the kind of consumer breakthrough that redefined an entire industry.
In the heart of Saylor’s vision is Strc’s availability. Contrary to the strategy’s previous instruments, such as strs, strf and strd-as he praised as innovative, but for complex or unstable for mass recording, the STRC is designed to function more like a yield improved savings account. “If I walk down the street and you ask a hundred people, ‘do you want a bank account with high dividends?’ 99 out of 100 say yes, ”he said, emphasizing the simplicity of the field.
He believes that STRC solves two core problems: It stripes away prolonged volatility by targeting short duration and low price fluctuations, and it offers a consistent premium over typical banking yields. “We are removed to one month duration and it pays 500 basic points over your bank account,” he said, describing the instrument’s 9% variable monthly yield.
It is important that the STRC is constructed to act near pairs ($ 100)giving investors peace of mind – especially those who are sensitive to price fluctuations. Saylor emphasized that previous products lost retail traction when their most important value swung by 5-10%. In contrast, Strc’s goal is to keep close to level, even when the Bitcoin prices move thanks to its heavy overcollateralization with BTC.
“If Stretch actually hits its pair and it deals with low volatility, you could in theory sell a hundred billion dollars of it, two hundred billion dollars of it,” he said analysts. That, he argued, would enable the strategy to massively scale its Bitcoin stocks without selling any BTC – effectively using his treasury as a security to make money on liquidity on the retail scale.
In Saylor’s view, this combination – simplicity, stability and yield – is what makes Strc transformation. Like iPhone Reimaginated how users interacted with mobile computing, STRC could redefine how companies are tapping capital markets in a bitcoin-native way.
