Strategy Launches Bitcoin-Backed Preferred Stock on Nasdaq

Michael Saylor, the Executive Chairman of Strategy, announced that the company's Bitcoin-backed preferred stock, $STRD, has commenced trading on the Nasdaq exchange. This marks the third product in a series of Bitcoin-backed preferred stocks designed for fixed income, secured by Bitcoin, and issued by Strategy. The launch of $STRD on Nasdaq signifies a significant milestone for Strategy, as it continues to expand its offerings in the Bitcoin economy. The preferred stocks that Strategy offers—STRK, STRF, and STRD—are tied to Bitcoin's measured performance and a fraction of its volatility, allowing the company to issue what Saylor called "the most liquid preferred stocks in the world with the highest performance."

The advantage Strategy holds is that it is a 100% Bitcoin company, he underlined. Saylor added that he deemed it impossible for a company to issue Bitcoin-backed convertible or fixed preferred stocks unless it was willing to turn its entire balance sheet Bitcoin-based. He added: "So I'm not really worried about competition from JP Morgan or Berkshire Hathaway."

Earlier this month, Strategy announced plans for a public offering of 2.5 million shares of 10.00% Series A perpetual preferred stock (ticker: STRD). It is reported that the proceeds from this fundraising will be used for general corporate purposes, including Bitcoin acquisition and working capital. The company's decision to issue Bitcoin-backed preferred stocks reflects its commitment to leveraging Bitcoin as a strategic asset, providing investors with exposure to the cryptocurrency market while offering a fixed income component.

Saylor made these remarks in an interview. He added that Bitcoin's epic rally will be good for the entire crypto economy, including everyone holding any Bitcoin-backed equity or credit-based instruments. The Strategy chairman also addressed Jamie Dimon and Warren Buffett characterizing Bitcoin as "worthless" and “rat poison squared” respectively. The Bitcoin advocate argued that people even called electricity and airplanes worthless in the beginning because they didn't understand the new technologies. Saylor's Strategy began acquiring Bitcoin in 2020 and is the world's largest corporate Bitcoin holder today.