MicroStrategy’s CEO Phong Le has described the company’s Stretch (STRC) preferred stock as its “iPhone moment,” citing over $5 billion in cumulative proceeds raised in just seven months. The product’s success, funded largely by retail investors, has accelerated the firm’s Bitcoin acquisitions, which now total 766,970 BTC after a recent 4,800 BTC purchase. The company’s common stock, MSTR, saw a 5.6% rise following Bitcoin’s surge past $72,000.
MicroStrategy CEO Phong Le has called the firm’s Stretch (STRC) preferred stock its “$STRC is our iPhone moment.” He stated the product generated $5 billion in cumulative revenue in seven months, a pace he claims is faster than the iPhone’s early growth.
Le noted that the only product that has grown faster than Stretch is BlackRock’s IBIT. The retail segment dominates STRC ownership with an 80% market share according to Le, who attributed this to the stock’s lower volatility compared to the company’s common stock, MSTR.
STRC currently offers an 11.5% variable monthly yield, which attracts retail investors comfortable with its risk profile. In contrast, MSTR is about twice as volatile as Bitcoin and is 60% owned by institutional investors who can tolerate larger swings.
Proceeds from STRC sales are primarily used to purchase Bitcoin. A $64.3 million sale on April 7 funded the acquisition of 936 BTC.
The company recently announced a 4,800 BTC purchase, with nearly 70% funded by STRC. This brings MicroStrategy’s total Bitcoin holdings to 766,970 BTC, with 94,000 BTC acquired year-to-date.
MSTR’s stock price increased 5.6% to $130 after Tuesday’s market hours. This movement followed Bitcoin’s 6% surge to over $72,000, which occurred amid a reported U.S.-Iran ceasefire deal.
