MicroStrategy 'Stretch'-ed it too far with new product launch
MicroStrategy, now renamed Strategy, made a fresh IPO of 5 million shares of its newest perpetual preferred stock: $STRC, aka 'Stretch," on July 21.
The offering, led by chief executive Phong Le and executive chairman Michael Saylor, is being sold as a strategic complement to their growing suite of Bitcoin-linked investment products.
But the news is already stirring debate online.
Crypto commentator RunnerXBT said, "stretch investors bout to have their a**es, stretched," which reflects the more general cynicism on social media that Strategy may be overexposing itself to a bullish Bitcoin by offering more complex products.How is Stretch different from Strategy's other products?
In a live investor presentation, Strategy makes it known that Stretch is intended to set a target price of $100 per share. Phong Le outlined in detail three important modes to aid in this:
A variable dividend rate,
An at-the-market (ATM) issuance, and
A unique call option feature.
Since August 2020, when the firm adopted a Bitcoin standard, it has generated some eye-popping returns — claiming a 104% annualized return, compared to just 59% for Bitcoin itself, and 172% over the past 12 months.
Strategy has generated $21 billion in digital asset value to date in the second quarter of 2025, with Saylor stating that the company's success makes its balance sheet as strong as that of Meta and Apple.
According to Strategy execs, they're 'pretty excited" about the new $STRC product and point to the monthly dividend structure — a differentiator versus instruments such as Strike or Strife.
"It's not a quarterly dividend, it's a monthly dividend," said Michael Saylor, adding that potential buyers, when taking on risk, favored "regular free cash flow." The dividend will be paid monthly, with a record date on the 15th of each month and a payout on the last day of the month.
At $95, Stretch could be funded at a 9.5% annual rate, and at $90, Strategy's early guidance indicated a 10% rate.
Still, critics are wondering whether the introduction of yet another favorite instrument — after Strike, Strife, and Stride — constitutes brilliance or brand fatigue. With investors in fierce agreement and drawing seemingly opposed conclusions, all eyes now are on whether Stretch will snap or hold.
MicroStrategy 'Stretch'-ed it too far with new product launch first appeared on TheStreet on Jul 21, 2025
This story was originally reported by TheStreet on Jul 21, 2025, where it first appeared.
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