Why Other Bitcoin Treasury Firms Are Betting on Strategy's 'iPhone Moment'
At the recent Strategy World conference, discussion centered less on Bitcoin and more on Strategy’s variable-rate preferred share, STRC, now the company’s main marketing and ecosystem focus. STRC pays an 11.5% annual dividend and is designed to trade near $100; when above par, more shares are issued to fund additional Bitcoin purchases, and when below, dividends rise to support the price. Since the conference, Strategy has raised $1.5 billion through STRC, representing 33% of its market cap, and has used proceeds for significant new Bitcoin acquisitions. Strive Asset Management has launched a similar offering, SATA, with a 12.75% yield, further cementing this new model’s adoption among Bitcoin-focused firms. STRC is marketed as “digital credit” but, legally, is unsecured and lacks collateral claims on Bitcoin holdings. The firm depends on continued market access to fund dividends, planning to use common share sales to support obligations. Despite $1 billion in annual STRC dividends and $8.2 billion in convertible debt maturing from 2028, analysts see little imminent cash crunch. Future risks include Bitcoin price volatility and potential dividend suspensions.
