Strategy (MSTR) is using bitcoin to create stability with its $2 billion “Stretch” Preferred Stock (STRC) offering, offering a 9% dividend and aiming to keep share price near $100. The offering is not direct bitcoin exposure but is backed by the asset in spirit. Strategy holds $71.7 billion in bitcoin and $11 billion in liabilities, allowing for income even if crypto prices dip.

Historically, bitcoin has returned at least 3%–4% annually over any five-year stretch. Strategy hopes to sustain high payouts without touching its crypto stash by turning long-term bitcoin appreciation into monthly cash flow. Investor interest led Strategy to quadruple the offering size from $500 million to $2 billion.

STRC is seen as a high-yield, bitcoin-backed, money-market-style vehicle, offering a higher yield than traditional short-term instruments. It may not just be a yield vehicle, but rather bitcoin reworked for traditional finance income investors. Michael Saylor continues to build out his own yield curve with the upsized Preferred Stock sale.

Read more at Yahoo Finance: Michael Saylor Is Bringing Bitcoin-Backed Money-Market-Style Vehicle to Wall Street: NYDIG