Strategy is doubling down on Bitcoin through a new $1 billion preferred stock IPO. <\/p>\n
Executive Chairman Michael Saylor explained on CNBC\u2019s Squawk Box how Strategy is leveraging high-yield instruments to convert dollar capital into Bitcoin (BTC) exposure.<\/p>\n
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\u201cWe are offering fixed U.S. dollar yield and we\u2019re swapping it into BTC yield, which is what our equity investors want,\u201d said Saylor. \u201cThe big breakthrough is that and the preferred market the capital never comes due. There\u2019s no refinance risk. We\u2019re basically offering a perpetual US dollar yield forever. And so by matching a very long duration instrument on the liability side with the long duration asset, we\u2019re creating, in essence, an indestructible balance sheet.\u201d<\/p>\n<\/blockquote>\n
Outperformance of Strike and Stride highlights investor appeal<\/h2>\n
Saylor highlighted the strong performance of the company\u2019s previous preferred stock offerings. The first, Strike, saw gains of 29% compared to a broader market decline of 6% in similar instruments. The third issuance, Stride, offered a 10% fixed yield and also outperformed, rising 22% while other preferreds fell by 4.5%.<\/p>\n
He called this approach a \u201cvery scalable, extremely low-risk way to generate leverage\u201d and said it benefits both sides of the market.<\/p>\n\n