STRC called an 'iPhone moment' as analysts flag hidden risks

Strategy has unveiled Perpetual Stretch Preferred Stock (STRC), calling the new funding tool its “iPhone moment.” The structure has helped the company issue billions of dollars in preferred shares and accumulate more than 50,000 bitcoin, while similar offerings, such as Strive’s SATA, follow the same model.

STRC targets a steady $100 share price by using a variable monthly dividend to nudge trading toward that level. When shares sit above $100, the dividend can be trimmed to cool demand; if they fall below, the dividend can be raised to attract buyers. That mechanism lets the firm issue new shares near par and deploy proceeds to buy bitcoin, supporting more than $3.5 billion in purchases so far.

Analysts warn, however, that the risks are not about dividend coverage but about governance and subordination. If bitcoin falls and confidence wanes, STRC could slip below par and the usual defense—raising the dividend—would increase cash obligations and could trigger a feedback loop.

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