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- Michael Saylor’s STRF stock launches on Nasdaq, offering USD and BTC rewards.
- The crypto community debates its sustainability, with concerns over funding methods.
Michael Saylor’s latest venture, STRF (Strife), began trading today, March 26, on the Nasdaq. Strategy’s preferred shares give investors in STRF USD returns while paying Bitcoin rewards to the shareholders of MSTR as well.
Our new preferred stock STRF (“Strife”) creates USD Yield for $STRF investors—and BTC Yield for $MSTR investors. It begins trading today on Nasdaq.
— Michael Saylor
(@saylor) March 26, 2025
The stock’s launch follows a March 18 announcement detailing the offering of 5 million shares under the Securities Act of 1933.
The proceeds from the offering will be used for general corporate purposes, including the purchase of Bitcoins and working capital. STRF pays a fixed annual dividend of 10% of its initial share price of $100 per share.
Unpaid dividends will grow at the rate of compounding, which may be up to 18% per annum in the long term. Dividend payment will be in cash, quarterly, with effect from June 30, 2025.
Strategy today announced the launch of $STRF (“Strife”), a new perpetual preferred stock offering, available to institutional investors and select non-institutional investors. For more information, click here. $MSTR https://t.co/XM7XbMepEY
— Michael Saylor
Strategy has the right to redeem all the outstanding shares of STRF if there are less than 25% of the initial offering outstanding. Investors may also request redemption in the event of any significant corporate change.
Liquidation preference will fluctuate based on trading, ensuring its market value adjusts to reflect current transactions.
Wall Street Firms Back STRF Offering
The launch of STRF has attracted major financial institutions. Morgan Stanley, Barclays, Citigroup, and Moelis & Company are managing the offering as joint bookrunners. The prospectus may be viewed by investors on the SEC website.
The offering was made under an effective shelf registration, which enables Strategy to issue additional shares in the future if market conditions allow.
The preferred stock’s redemption and dividend features make it the most sought-after investment for yield investors in mainstream finance and the emergent Bitcoin market as well.
Crypto Community Questions STRF’s Viability
While Saylor remains one of the strongest Bitcoin proponents, the funding model of STRF has raised eyebrows. Strategy’s practice of issuing fresh shares to pay dividends has been questioned by some investors.
A Bitcoin Asset Research crypto analyst debunked the accusations that STRF has the form of a pyramid scheme. He described the company as having to issue more shares to fund dividends but confirmed that there are still passive investment flows into MSTR, maintaining demand intact.
$MSTR is not a pyramid scheme. Rather, it exploits pyramid schemes. Let me explain
Some people are pointing out that @Strategy cannot pay dividends on $STRK and $STRF with cash flows, so it needs to issue more common stock. And that this is a pyramid scheme because new…
— Bitcoin Asset Research (@stonychambers) March 25, 2025
According to the researcher, the broader financial system consists of a pyramid scheme, as the money in the system is backed by debt. He asserted that Strategy just exploits this dynamic, ensuring continuous investment flows.
If Bitcoin continues to appreciate, then MSTR will stay in good shape, profiting from both market demand and its Bitcoin investment.
The debate surrounding STRF’s structure highlights the broader discussion of the intersection of traditional finance and cryptocurrency. While some view it as a strategic move to surf the wave of Bitcoin’s growth, others question its long-term feasibility.
