Michael Saylor outlines Strategy's leveraged Bitcoin approach using STRC and MSTR structure

Michael Saylor said on March 14 that Strategy uses appreciated Bitcoin holdings as equity-backed collateral to issue credit through STRC, with part of the BTC gains monetized directly or via MSTR-linked derivatives to fund dividends, BlockBeats reports. Under this framework, STRC credit investors receive cash flow and relative stability, while MSTR equity holders bear amplified value performance and higher volatility. Strategy, the largest cryptocurrency treasury holder, owns 738,731 BTC at a total cost of about $56.04 billion, while MSTR has a market capitalization of $46.6 billion and STRC is a floating-rate perpetual preferred share priced near $100 with an annual dividend yield of roughly 11% paid monthly. Strategy continuously issues STRC to purchase additional BTC, aiming to expand its market capitalization by leveraging the perception that BTC reserves should be worth less than MSTR's market cap, a structure that internalizes leverage and increases MSTR price volatility relative to BTC.