MicroStrategy announced the issuance of "Variable Rate Series A Perpetual Stretch Preferred Stock" (STRC), planning to issue 5 million shares with a par value of $100 per share, expected to raise approximately $500 million. The product pays a monthly dividend at an initial annual rate of 9%, with unpaid dividends compounding monthly; its core feature is dynamically adjusting the price to anchor within a narrow range of $99-101, while the dividend rate can be adjusted according to the SOFR rate to maintain price stability.
Yes, that's right. This product is very interesting. Unlike previous preferred stock products, it primarily returns benefits to holders through high monthly dividend payments.
Product Characteristics: An Innovative Form Between Preferred Stock and "Quasi-Stable Tools"
STRC's design breaks the traditional fixed mode of preferred stocks, presenting characteristics similar to the "stability mechanism" in the crypto market:
Price Anchoring Logic:Unlike traditional preferred stocks, STRC explicitly controls price fluctuations within the $99-101 range, similar to a "soft $100 anchor" synthetic tool - this mechanism distinguishes it from ordinary stocks (freely fluctuating prices) and bonds (fixed redemption obligations), and is closer to a "high-interest price stability tool".
Dynamic Dividend Adjustment:The initial dividend rate is 9% annually, with MicroStrategy able to adjust monthly based on SOFR rate changes, with unpaid dividends compounding monthly (rather than simply accumulating), enhancing adaptability to the interest rate environment and strengthening payment willingness through a "compound penalty".
Capital Structure Positioning:As a "perpetual preferred stock", STRC has no maturity date, with a priority level lower than existing preferred stocks like STRK but higher than common stocks, with the key difference being "no mandatory redemption obligation" - even if the price deviates or dividend payments stop, it does not constitute a legal default.
From a market perspective,its success depends on the stability of Bit price (supporting the company's balance sheet) and investors' continued trust in "high interest + price stability".
Summary: STRC as an Inspiration for "Cross-Border Experiment"
The launch of STRC is a bold attempt to merge traditional financial instruments with crypto market mechanisms: it is neither a pure preferred stock nor a typical stablecoin, but a "high-interest price anchoring tool" constructed through "dynamic dividends + market intervention". Its innovative value lies in providing a new paradigm for financing tools endorsing crypto assets, with risks concentrated in "trust dependence" and the transmission effect of Bit price fluctuations.
For the market, the significance of STRC is not whether it will repeat the mistakes of Luna/UST, but the trend it reveals: when traditional finance begins to learn from the crypto market's "dynamic stabilization mechanism", when crypto assets (Bit) become the endorsement basis for traditional financing tools, the boundaries between them are blurring - the success or failure of this cross-border experiment will provide important reference for future "integration of off-chain assets and on-chain mechanisms".
