Karla Barker 
Understanding Saylor’s STRC Comparison
Michael Saylor recently made some interesting comparisons on national television. He described his company’s Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, as something similar to a money market or high-yield bank account. This got people talking, especially when he mentioned the 10% yield.
But here’s the thing – I think we need to be careful with these comparisons. When Saylor said “everybody in the world would love to have a high yield bank account that yielded 10% or more,” he was making a compelling point. However, STRC isn’t actually a bank account at all. It’s a publicly traded stock that moves up and down in price daily.
How STRC Actually Works
STRC trades on Nasdaq’s Global Select exchange, and its price has ranged between about $92 and $98 since it started trading in July 2025. The company promotes its price stability, but it’s still a stock that could theoretically trade at almost any price in the future.
The 10% dividend is calculated on the $100 per share stated amount. This means if you buy shares below $100, your effective yield actually goes up. For instance, at yesterday’s closing price of $97.05, the effective yield was about 10.3%.
Some investors might look at that yield and think it behaves like a money market fund. But the comparison starts to break down when you look closer.
Key Differences from Traditional Banking Products
What makes STRC different from actual bank accounts? Well, for starters, Strategy doesn’t have standing bids in the market to absorb unlimited sell orders. They’ve offered two ways to counteract falling prices: they can redeem shares at $101 plus dividends, or they can increase the dividend rate to boost demand.
But here’s the catch – both of these are at Strategy’s “sole and absolute discretion.” The company can choose to do these things, but they’re not obligated to. This is completely different from how banks and credit unions operate.
The Regulatory Reality
Actual money market accounts at banks come with FDIC or NCUA insurance up to $250,000 per depositor. That means your money is guaranteed up to that amount. These institutions have strict obligations to regulators like the OCC, FDIC, and NCUA.
Even money markets at brokerages must comply with SEC Rule 2a-7 and other financial regulations. Bank savings accounts have guaranteed value and are controlled terms that require compliance with specific rules.
STRC doesn’t follow any of these money market or bank account regulations. While it’s shown relative price stability so far, that could change at any time without the safety nets that traditional banking products provide.
Perhaps the most important distinction is that STRC holders face market risk – the price can drop, and there’s no insurance protecting their investment. With bank accounts, your principal is protected up to the insured amount regardless of market conditions.
I think Saylor’s comparison was meant to highlight the attractive yield, but investors should understand they’re buying a stock, not opening a bank account. The risks and protections are fundamentally different.