MicroStrategy Launches $100-Pegged STRC to Fund Bitcoin Buys
MicroStrategy has launched an IPO of 5 million Series A Variable-Rate Perpetual Stretch Convertible Preferred Shares (STRC Preferred Stock) with a $100 face value. Each STRC Preferred Stock share pays a monthly dividend at an annual rate starting at 9%, adjusting monthly to maintain parity near $100—akin to a synthetic stablecoin. Proceeds will fund operations and additional Bitcoin purchases, following MicroStrategy’s $4.2 billion at-the-market equity raise. Immediately after the STRC announcement, the company bought $740 million of Bitcoin at an average price of $118,940 per coin. Analysts call the STRC Preferred Stock a novel channel for converting fiat into Bitcoin, expecting it to broaden institutional inflows and support stronger demand. While the perpetual structure and dividend variability add complexity, the offering blends traditional finance with digital assets and could boost Bitcoin liquidity and corporate treasury adoption.
Bullish
By launching the STRC Preferred Stock, MicroStrategy is securing additional capital specifically earmarked for Bitcoin purchases. This new funding channel increases institutional demand and liquidity, which could lift Bitcoin prices in the short term following immediate $740 million acquisitions. Over the long term, the synthetic stablecoin–like structure of the variable-rate preferred shares can attract corporate treasuries and institutional investors seeking stable yield with Bitcoin exposure. Despite complexities like dividend variability and regulatory uncertainty, the positive market reception and precedent-setting potential make this development bullish for Bitcoin’s price trajectory.