Strategy's Michael Saylor Discusses STRC's Stability as a Bitcoin Investment Tool

Michael Saylor, Executive Chairman of Strategy, recently elaborated on the positioning of STRC as a low-volatility investment tool related to Bitcoin. According to ChainCatcher, STRC is Strategy's perpetual preferred stock with an annual dividend yield of 11.5%, paid monthly in cash. The dividend rate is adjusted monthly to encourage trading near the $100 par value and reduce price volatility. Saylor described STRC as a credit product designed for income, stability, liquidity, and principal protection, backed by the company's Bitcoin and dollar assets. The preferred stock structure is considered more scalable and durable than debt. Strategy has proposed changing the STRC dividend payment frequency from once a month to twice a month, on the 15th and at the end of the month, while keeping the annual dividend total unchanged. This change aims to stabilize prices, suppress cyclicality, and enhance liquidity. Saylor used metaphors to differentiate the three: STRC is likened to a passenger plane, BTC to a fighter jet, and MSTR to a rocket ship. Currently, Strategy holds 818,334 Bitcoins, representing approximately 3.9% of the total supply of 21 million. STRC has reached a scale of $8.5 billion within nine months.