Introduction of Stride
On June 3, 2025, Strategy, previously known as MicroStrategy, launched an innovative perpetual stock named Stride (STRD). This financial product offers a notable 10% yield tied to Bitcoin, allowing investors to benefit without directly holding the cryptocurrency. At the same time, the cash generated from this stock will be used by Strategy to acquire additional Bitcoin.
However, the introduction of Stride was met with mixed reactions from the cryptocurrency community.
Expansion of Preferred Stocks
With the launch of Stride, Strategy has expanded its array of preferred stocks, complementing its offerings which include the Series A Preferred Stock Stride (STRD) along with previously released Strike (STRK) and Strife (STRF). While Stride boasts a fixed yield of 10%—outpacing Strike’s 8%—its position is considered less favorable compared to Strife, which also offers a 10% yield but with higher seniority.
Concerns from the Community
Despite being free of fees and promising a yield that exceeds many ETFs, the Stride offering has triggered skepticism. Critics have voiced concerns on platforms like Crypto Twitter, interpreting this move as evidence of Strategy’s precarious financial condition. Observers are apprehensive that the company might be struggling to raise enough capital, implying it could resort to selling its Bitcoin holdings to meet dividend obligations.
Nic Puckrin, CEO and co-founder of CoinBureau, highlighted these reservations on social media, questioning the sustainability of the dividend payments from the new stock and expressing concerns over potential dilution of common stock.
This leads to further speculation about whether funds intended for dividends might come from new investments, echoing the underlying fears of a pyramid-like scheme.
Financial Performance and Investor Speculation
Adding to the doubts is Strategy’s reported net loss of $4.22 billion in the first quarter of 2025, intensifying the scrutiny of the firm’s actions. Some investors even theorize that if dividends for STRD are funded by selling MSTR stock, it could disrupt the company’s structured Bitcoin strategy and adversely impact existing shareholders.
Optimistic Perspectives
On the other hand, there are optimistic voices within the investment community too. Currently, Bitcoin is valued at over $100,000, which lessens the immediate concern over Strategy’s $8 billion debt, and some see Stride as a clever financial maneuver rather than a sign of distress.
Investor Adam Livingston, author of ‘The Bitcoin Age’ and ‘The Great Harvest’, shared his perspective, arguing that Saylor is adeptly acquiring low-cost capital while avoiding dilution of common stock.
He referred to the 10% yield as a clever cover for Bitcoin accumulation, suggesting that while the offering seems attractive for traditional finance investors, it may not appeal to seasoned Bitcoin enthusiasts.
Conclusion
In a somewhat humorous critique, he claimed that Saylor has effectively created a “safe” version of Bitcoin for more conservative investors, simultaneously leveraging their capital to purchase Bitcoin. He suggested that Saylor is ingeniously profiting from this situation, benefiting from both the current market dynamics and the investor sentiment.
Overall, while the introduction of Stride has been lauded by some as a brilliant financial strategy, others harbor suspicions that echo the vulnerabilities inherent in high-yield investment structures, raising questions about the broader implications for the cryptocurrency market and its foundational principles.
