Strategy launches new preferred stock STRD, sparking market controversy

Strategy recently launched a new preferred stock product STRD, which is the company's latest move to increase its Bitcoin positions. STRD plans to issue 2.5 million shares, with the raised funds primarily used to purchase Bitcoin and supplement operating capital. This move has sparked widespread discussion in the market.

STRD, as the third category of preferred stock product of Strategy, has an innovative structural design. It offers a 10% annual coupon, but the company does not have a mandatory payment obligation, and the interest does not accumulate. This design is interpreted by some analysts as a "defensive yet offensive" strategy.

In theory, Strategy can pay interest on STRD in three ways: selling Bitcoin holdings, continuous financing rollover, or using company operating cash flow. Although the company has the right not to pay interest, doing so could severely damage its market reputation and future financing capabilities. Therefore, as long as the Bitcoin market performs steadily, Strategy is likely to choose to fulfill its obligations on time.

At the same time, the three existing preferred stock products of Strategy, STRK, STRF, and STRD, each have their own characteristics in terms of liquidation priority, yield design, and risk structure, targeting different risk-tolerant investors. The launch of STRD is also regarded as an optimization of the company's overall capital structure.

However, the issuance of STRD has sparked controversy within the community. Some investors believe it is a form of "capital magic" or "Ponzi nesting doll." Analysts have pointed out that STRD is actually a Bitcoin accumulation option disguised as a yield tool. There are also views that the design of this product enhances the credit quality of STRF.

For the future development of Strategy, some predict that the company may gradually transform into a Bitcoin-based bank, maintaining cash flow through Bitcoin lending or participating in quantitative trading.

Overall, the Strategy packages Bitcoin faith through this structured product, masking the practice of unilateral betting with a risk-return model, which has attracted widespread attention in the market. This faith-based financial experiment is becoming increasingly complex and worth watching.