Strategy’s new “Stretch” (STRC) stock, designed to provide stable returns for investors amidst a chaotic crypto market, will launch this week.
Saylor’s Strategy Pitches Stability to Investors with New Preferred Stock Issue
28 July 2025 - 14:44 CEST
Strategy expects to raise close to $2.5 billion by selling 28 million shares at $90 the company announced on Friday.
Emphasis on stability
The STRC is a senior, perpetual preferred stock, with a variable monthly dividend return that Strategy says could offer investors a 9% yield. It’s designed “to promote stable price dynamics”. In the investor presentation, the company notes that the stock is “for short-duration investors seeking stable value with higher yield than money markets.”
In order to provide the advertised stability, Strategy also announced mechanisms to maintain a trading price of around $100. These include adjustable dividend rates, secondary insurance windows and call options.
STRC aims to stand out compared with other similar short-term investment options on the market. While Treasury bills or money market funds offer a 4% return, STRC’s planned effective monthly yield will be in the 9% to 10% range at IPO. If it achieves that, it would enable Strategy to position itself competitively to TradFi actors, with the potential to make STRC an attractive option for investors.
Strategy has reserved the right to adjust the monthly dividend at its discretion, subject to specific restrictions.
Continued Expansion
“Stretch” is the latest example of a series of financial engineering feats produced by Strategy, designed to extract value from Bitcoin price increases. Its founder Michael Saylor has used the resulting funds to aggressively purchase Bitcoin for its treasury, combined with repeated trips to the capital markets to raise funds. Saylor developed a rift with legendary short seller Jim Chanos earlier this year over the way in which Strategy relates its crypto holdings to the value of its shares.
In this latest initiative to finance corporate development and Bitcoin buying, Saylor said in a post on X that the offering had been upsized. The company originally had planned to only offer 5 million shares at $100, for a total of only $500 million. That’s drawn significant attention from Wall Street watchers in recent days, but so far no public comment from Chanos.
