Strategy launches Bitcoin-supported preferred stock STRC, locking in a 9.5% yield to attract retirement investors.

Michael Saylor, Chairman of Strategy (formerly MicroStrategy), announced during the latest earnings call that the company has launched Bitcoin-collateralized preferred stock STRC, featuring an Annual Percentage Rate of 9.5%, which is significantly higher than traditional savings accounts. This structured product is positioned as a more attractive alternative to money market funds, specifically designed for retirement investors seeking stable returns, and is supported by six times over-collateralization of Bitcoin.

Bitcoin preferred stocks become a new choice for retirement funds Michael Saylor, Chairman of Strategy, emphasized in the second quarter earnings call that the company's newly issued STRC preferred stock is a high-yield product tailored for "risk-averse investors and retirees." He stated that compared to the 0.1%-4% interest rates offered by traditional bank savings accounts, STRC offers an annual percentage rate of up to 9.5%.

Structure and Characteristics of STRC Preferred Shares The product called STRC adopts a structure of Perpetual Preferred Securities, which does not have an expiration date and pays interest monthly, fully supported by Strategy's massive Bitcoin reserves. It is reported that the company currently holds 628,791 Bitcoins, with a market value exceeding $74 billion. STRC preferred shares have six times the Bitcoin over-collateralization, designed similarly to money market funds but with higher returns.

Nasdaq Trading and Daily Liquidity Advantage Unlike traditional preferred stocks, STRC trades on Nasdaq and offers daily liquidity. Saylor pointed out that compared to traditional preferred stocks with low trading volume, STRC is more vibrant in the market and is suitable for investors who wish to achieve stable cash flow without taking on long-term lock-up risks.

Stability and Risk Resistance Behind High Returns Peter Chung, the research director from Presto Labs in Singapore, believes that while this product cannot compare to the stability of traditional pension products, its structure still provides strong cushioning during extreme market fluctuations. He noted that even if the price of Bitcoin drops by 80%, the Bitcoin reserves of the Strategy can still support 24 years of coupon payments.

The Trend of Bitcoin Financialization Accelerates Chung pointed out that the launch of STRC signifies the acceleration of Bitcoin's "financialization" process, aimed at attracting non-crypto native users to participate. He reminded investors that the high returns of such products come with high risks, and they must bear the consequences of their investments.

Regulatory Attitude and Policy Benefits Saylor also emphasized during the earnings call that the current U.S. government holds a positive attitude towards the cryptocurrency industry and the Bitcoin ecosystem. The 150-page cryptocurrency policy report released by the White House this week indicates that the future policy environment will be more favorable for the development of such financial innovation products.

Conclusion: The launch of STRC preferred shares through Strategy further promotes the evolution of Bitcoin's role in traditional finance, providing new allocation options for retirement investors seeking high returns. This initiative marks a transition of crypto assets from high-volatility investment tools to mainstream stable income products. As the policy environment and market acceptance improve, the financialization of Bitcoin will continue to accelerate.