According to a July 21 statement, the Bitcoin-centric Treasury business strategy has introduced a new class of permanent preferred stocks, Series A Variable Letching Preferred Stocks (STR).
The company said it plans to issue 5 million shares at a par value of $100 each, as regulatory clearance and market conditions are pending.
STRC vs Money Market Fund
STRC offers a first annual dividend of 9%, paid monthly and approved by the board of directors. Dividend rates fluctuate, but the strategy limits downward adjustments to 25 basis points per change, maintaining yield stability.
This structure positions STRC as an attractive alternative to traditional money market funds, currently offering a yield of around 4.25%.
Joe Consorti, director of growth at Thea Bitcoin, has organized the product as a deliberate play to redirect capital from traditional fixed income vehicles to Bitcoin-assisted instruments.
He said:
“New fluctuation rates of strategies are desirable strc The initial yield is 9% and is targeted at money market funds. A market of $7.05 trillion, about 25% of the US Treasury produces just 4.25%. ”
Beyond high payments, STRC includes redemption mechanisms tailored to both the strategy and its investors.
The Company reserves the right to redeem $101 and unpaid dividends on the shares, but investors will be given a face value exit in the event of a “fundamental change.” These terms provide both flexibility and negative side protection, increasing the appeal of the product in uncertain market conditions.
Persistent delivery of strategy
STRC extends the growth family of Bitcoin Link’s preferred securities offering strategy.
The company’s previous issues include STRK, a convertible series that pays a fixed dividend of 8%, moving to a common stock under defined conditions, offering the owner the opposite option along with the income.
The other is STRF, a non-conversion series that is centered around a cumulative 10% dividend. According to the company, unpaid late arrears should be stacked and the whole should be made before a general distribution.
Furthermore, another non-convertible product, STRD, targets 10% annual payments, but never missed a dividend, creating a cleaner and more flexible obligation for the publisher.
Speaking about these products, Bitcoin analyst Adrian Cercenia said:
“Strategy is to build a ‘yield curve’ of a product for a variety of risk appetites and return profiles. (Companies) are building multiple “pumps” to extract Fiat from a stagnant or trapped liquidity pool and convert it to Bitcoin. ”
He said investors who want the service to receive yield and indirect Bitcoin exposure will diversify away from the traditional Treasury, seeking income that could surpass inflation, expressing their views on digital assets without purchasing spot BTC entirely.
