- Michael Saylor agreed with a CNBC host comparing his company’s STRC shares to a money market fund during a live interview.
- STRC is an uninsured, Bitcoin-backed preferred share paying 11.5% dividend, but lacks the regulations and protections of actual money market funds.
- 80% of STRC buyers are retail investors, and the shares have traded significantly below their intended $100 value, according to Bloomberg.
On Thursday’s CNBC Power Lunch, host Brian Sullivan asked Michael Saylor if he offended him by calling Strategy’s STRC shares “a money market fund.” Saylor happily agreed with the comparison, tweeting later that his company’s products are redefining yield. However, STRC is a perpetual preferred stock backed by volatile Bitcoin, not a regulated fund with stable asset values or investor protections.
Consequently, STRC carries no FDIC or SIPC insurance, a critical distinction from actual money markets. The company has admitted it is “not required to hold any assets to back the STRC Stock.” Meanwhile, STRC’s share price has repeatedly fallen below $93.50, reaching a low of $90.52 last November.
Retail investors own approximately 80% of STRC, according to Bloomberg. Saylor has marketed STRC on national television as “a bank that pays you 20% interest,” despite its junk “B-” credit rating. Strategy is paying a 11.5% dividend, significantly higher than its initial 9% rate, to sustain demand.
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