Why STRC Acts Like Leveraged Bitcoin Without Heavy Dilution
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STRC functions as a structured way for MicroStrategy to amplify its exposure to Bitcoin. By issuing preferred shares with a fixed dividend, the company can raise cash to buy BTC while limiting dilution to its common stock, effectively turning STRC into a leveraged Bitcoin instrument.
The math favors shareholders if Bitcoin outpaces the dividend cost. Even with an 11% yield obligation, strong long-term BTC appreciation can overwhelm dividend expenses, allowing the company to grow its Bitcoin balance sheet while preserving equity value.
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