Michael Saylor Introduces Bitcoin-Backed Preferred Shares as a High-Yield Option for Retirees

Michael Saylor, chairman of Strategy, has unveiled a new investment product that could appeal especially to retirees seeking stable and profitable income. These are STRC preferred shares backed by Bitcoin, offering an annual yield of up to 9.5%—significantly higher than traditional savings accounts, which typically offer between 0.1% and 4%. During the company’s Q2 earnings call, Saylor described these shares as a steady income source designed for risk-averse investors. He stated that products like STRC are aimed not only at seasoned investors but also the broader public looking for higher returns without long-term commitments.

Record Profits Thanks to Bitcoin Strategy, formerly known as MicroStrategy, posted a record profit of $10 billion in Q2, primarily driven by Bitcoin’s price surge from $77,000 to over $111,000. The company now holds 628,791 BTC, valued at over $74 billion—making it one of the largest corporate Bitcoin holders globally.

Bitcoin-Backed Preferred Securities These preferred shares are structured as perpetual instruments—without a maturity date—and pay out monthly dividends backed by Strategy’s vast Bitcoin reserves. The new STRC issuance is listed on NASDAQ and offers high liquidity, which is uncommon for such instruments. The shares are designed to have up to six times collateralization in Bitcoin. Even in the event of a dramatic 80% drop in Bitcoin’s value, the assets would still cover 24 years of payments. At current prices, that coverage extends to 120 years.

Suitable for Conservative and Modern Investors Saylor emphasized the product’s suitability for retirees seeking better yields than conventional bank accounts, with strong underlying collateral. He also highlighted growing regulatory support for Bitcoin in the U.S., stating that “this administration is enthusiastically backing the crypto industry,” referencing a recently published 150-page White House report on crypto policy.

Bitcoin Moves Closer to the Mainstream Analysts view this development as further proof of Bitcoin’s “financialization” within the traditional market. By structuring the product similar to money market funds, it attracts new investor demographics who previously had no exposure to crypto. While risks remain and investors must be aware of volatility, products like STRC could mark a new era—where Bitcoin is not only a speculative asset, but also a tool for generating reliable income.

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