Strategy launches Bitcoin-backed preferred stock with 9% return

• STRC Action Targets Money Market Fund Capital
• Strategy product offers income tied to Bitcoin
• Traditional investors seek indirect exposure to Bitcoin

Treasury firm Strategy announced a new class of Bitcoin-linked perpetual preferred stock, called Series A STRC (Preferred Stock of Variable Rate), expected to attract an estimated $7 trillion in funding from traditional funds. The proposal includes the issuance of 5 million shares at a par value of $100 each, subject to regulatory approval and market conditions.

Strategy is offering $STRC (“Stretch”), a new Perpetual Preferred Stock via IPO, to select investors. $ MSTR pic.twitter.com/LaQSrrMsEg

— Michael Saylor (@saylor) July 21, 2025

With an initial annual dividend of 9%, paid monthly and subject to board approval, STRC seeks to offer a more attractive yield alternative compared to money market funds, whose returns hover around 4,25%. Even though it's a variable rate, Strategy has established a reduction limit of just 25 basis points per adjustment, offering investors greater predictability.

Joe Consorti, head of growth at Theya Bitcoin, highlighted that the STRC is a clear strategy for capturing some of the capital allocated to conventional fixed-income instruments. "Strategy's new variable-rate preferred STRC has a starting yield of 9% and targets money market funds. A market of $7,05 trillion, about 25% of all U.S. Treasuries, yields only ~4,25%."

Strategy's new variable rate preference $STRC has a 9% initial yield, and is targeting money market funds.

A $7.05 trillion market, about 25% of all US Treasuries, yielding just ~4.25%.

Bitcoin is about to swallow the fixed income market. https://t.co/vhUDEpJdkR pic.twitter.com/oulrRugBYV

— Joe Consorti ⚡️ (@JoeConsorti) July 21, 2025

In addition to the return, the product has customized redemption clauses: Strategy can buy back shares for $101 plus accumulated dividends, while investors are entitled to the nominal value in the event of a "fundamental change."

The new issuance joins Strategy's other fixed-income initiatives with Bitcoin exposure, such as STRK—a convertible series with a fixed 8% dividend yield and the possibility of conversion into common shares—and STRF, structured with a 10% cumulative yield. Also part of the portfolio is STRD, which promises 10% annual yield with no outstanding dividends.

According to analyst Adrian Cercenia, the company is building a "yield curve" with different products tailored to investors' risk appetite. He believes the approach aims to capture stagnant liquidity resources and indirectly redirect them to the Bitcoin ecosystem.