Wow yet more Financial Jiu Jitsu from MSTR (Patreon)

MSTR coming out w yet another product - it is called Stretch.... let me try break it down.

What is STRC from MSTR?

STRC, called "Stretch", is a new kind of preferred stock issued - It's a special share that pays regular dividends and is backed by the company's Bitcoin holdings.

How does it work?

Each share starts at $100. It pays monthly dividends starting at 9% per year, but the company can change the rate to keep the share price steady around $100. Proceeds from selling these shares go toward buying more Bitcoin and general business needs.

Relation to Bitcoin and MSTR?

STRC gives investors a way to get exposure to Bitcoin's growth through stable dividends, while helping MSTR grow its Bitcoin pile.

What new flavor of financial jujutsu is it?

It's clever financial trickery where MSTR raises cheap money by selling these adjustable-dividend shares, uses it to buy Bitcoin, and leverages Bitcoin's rise to pay dividends and boost value. Unlike fixed bonds, the variable rate acts like a "stretchy" tool to avoid price swings, creating a Bitcoin-backed "credit" system that's low-risk for short-term investors but amplifies MSTR's Bitcoin bets.

Is it a money market fund?

No, it's not a money market fund (which invests in safe, short-term stuff like government bonds). Instead, it's a preferred stock designed to mimic one—short duration, low volatility, high yield (around 9-10%)—but backed by volatile Bitcoin, so it's riskier but potentially more rewarding.

Who has access to the IPO?

The IPO is a public offering registered with the SEC, so anyone can potentially buy shares through brokers. However, it's targeted at "select investors" like those seeking high-yield credit, and managed by big banks (Morgan Stanley, Barclays, etc.). Get the prospectus from sec.gov or contact the banks for details—it's not for everyone, as it requires understanding the risks.