According to Strategy Inc. executive chairman Michael Saylor, investors seeking exposure to bitcoin can choose among different instruments tailored to distinct financial goals. In comments shared on October 4, Saylor outlined a framework using bitcoin, Strategy common stock (MSTR), and Strategy preferred stock (STRC) to serve varying investor objectives.
A comparison chart shared by Saylor, dated October 2, illustrated historical price fluctuations across these assets over a 30-day trading period. The data placed Strategy's common stock at 94% historical volatility, bitcoin at 39% using Blackrock's IBIT exchange-traded fund as a proxy, and STRC preferred stock at 9%. The chart also showed STRC's volatility below major technology stocks, with the Magnificent Seven ranging from Apple's 21% to Meta's 47%.
In Saylor's framework, direct bitcoin ownership provides the foundational asset, while MSTR common shares offer amplified exposure with larger historical price swings. STRC preferred stock is targeted at income-seeking investors, holding priority over common shares for dividends and liquidation proceeds, though payouts depend on the issuer's financial capacity.
The STRC preferred stock features a variable dividend structure with an annualized rate of 12% for October, distributed through semi-monthly cash payments. The mechanism aims to encourage trading around a $100 stated amount by adjusting the annual rate monthly. These dividend payments originate from the company rather than the decentralized Bitcoin network, and preferred shares are not directly collateralized by the company's bitcoin holdings.
