On your STRC = “insanely high savings account” analogy: it’s close spiritually, but not literally a bank account.
- What STRC actually is: a variable-rate, perpetual preferred stock that pays monthly cash dividends. It launched with an initial 9.0% annualized rate on a $100 stated amount, and the board can adjust that rate monthly within set limits. Strategy even says it intends to tweak the rate to keep STRC trading near $100 par. There’s also a company call right (they can redeem at $101 + accrued). Dividends are cumulative (missed payments compound).
- Why it feels like a souped-up savings product: the combo of (a) monthly cash yield, (b) a target to hover near par, and (c) the company’s explicit goal to keep pricing stable makes it feel like a “yield account.” In practice, early coverage framed it around ~9–10% yields.
- But key differences from a bank account:
• No FDIC/NCUA insurance; this is equity, not a deposit.
• Market risk: it trades—recent 52-week range has been roughly low-$90s to high-$98s.
• Issuer/call risk: Strategy can change the rate and call the shares.
• BTC-treasury risk: the whole enterprise is tied to Strategy’s Bitcoin-forward model (index providers even debate whether it’s more “fund-like” than an operating company).
Lightning verdict
- “Strategy = Bitcoin bank?” In vibe and mechanics (funding → BTC reserves → yield menu), yes. In legal/regulatory terms, it’s a public company offering securities, not a chartered bank.
- “STRC = 2× T-bills / 10% savings?” It’s designed to target high yield and price stability, but it’s still marketed risk—not a savings account. Treat the ~9–10% figure as variable, board-set, and callable, not guaranteed.
If you want, I can break down STRC vs. T-bills vs. HY savings in a quick side-by-side and model cash flows at different dividend resets.