June 4, 2025 — Michael Saylor’s Strategy, the company formerly known as MicroStrategy, has introduced a new investment option that’s getting the crypto world talking. The new product, called Stride (STRD), is a type of preferred stock that promises investors a 10% annual yield—and the kicker? You don’t even need to buy Bitcoin to benefit from it.
But not everyone is convinced this is a good thing.
What is STRD?
STRD is Strategy’s latest financial tool, a non-callable, non-cumulative perpetual preferred stock that pays a fixed 10% dividend. In simple terms, it gives investors a consistent return, without owning any Bitcoin directly. Strategy, on the other hand, gets the cash to buy more Bitcoin for its reserves.
It’s the third in a series of Bitcoin-backed investment offerings from the company, following STRK (Strike) and STRF (Strife). Together, they’re part of what Strategy calls its “Bitcoin engine” — a system designed to leverage investor capital and Bitcoin volatility for long-term gains.
Why Is Everyone Talking About It?
Supporters say STRD is a smart financial strategy, especially for people or institutions that want exposure to Bitcoin profits without holding the actual cryptocurrency. It’s appealing to those in traditional finance (like pension funds or conservative investors) who are wary of crypto’s price swings.
Critics, however, are skeptical. Some see this move as a sign of financial strain, pointing to Strategy’s recent $4.2 billion net loss in Q1 2025. Concerns have also been raised about how Strategy will pay out dividends if it doesn’t raise enough money — potentially forcing it to sell Bitcoin or dilute its MSTR common stock.
Genius or “Ponzi Vibes”?
On social media, the reactions are split. Some call it a genius play by Michael Saylor to keep stacking Bitcoin while offering attractive returns to investors. Others are raising eyebrows, wondering if this resembles a Ponzi-style model—using money from new investors to pay existing ones.
Financial analyst Adam Livingston even joked, “Saylor just created the safe version of Bitcoin for boomers, using their capital to buy the asset they’re too scared to hold.”
What It Means for Investors
Whether you view STRD as a brilliant way to raise capital or a risky experiment depends on your confidence in Bitcoin’s long-term price and Strategy’s financial stability.
Here’s the bottom line:
- Pros: 10% yield, no Bitcoin needed, appealing to TradFi.
- Cons: Potential dilution, Bitcoin sell-offs, high risk if BTC price drops.
Strategy seems to be betting big on Bitcoin’s continued rise — and now it’s inviting others to join, without the need to hold crypto directly.
Final Thoughts
As the crypto market continues to evolve, financial innovation like STRD shows how the line between traditional finance and digital assets is getting blurrier. Whether this move strengthens Strategy’s Bitcoin strategy or adds more pressure remains to be seen. But one thing’s certain: this is a bold move that’s putting Michael Saylor and his team back in the crypto spotlight.
