Inside Stretch ($STRC): A New Income Tool for Client Portfolios – Strategy – 5.26.26

Summary:

Stretch ($STRC) is Strategy’s Nasdaq-listed perpetual preferred, structured to pay a high monthly dividend while trading near $100 price. STRC currently has ~2.0% realized volatility, pays an 11.5% annualized yield, and has traded near $100 through a 46% drawdown in bitcoin. This session walks RIAs through how the instrument is built, how it has performed, and where it might fit alongside the income tools you already use.

On the agenda:

• Price stability structure: Designed to be stable at $100 through monthly variable dividend rate and active ATM program
• Tax-deferred treatment: Return of Capital treatment that reduces the cost basis over time and defers the taxes
• What’s under the hood: >$67B bitcoin reserve backing STRC, the 4.3x BTC Rating, and 18 months of USD Reserve dividend coverage
• Performance through stress: How STRC traded and paid during the recent bitcoin drawdown
• Comparisons advisors are running: STRC against Treasuries, money markets, and short-duration credit
• Open Q&A

Accepted for 1 CFP / IWI / CFA CE Credit

Speaker:

Phong Le is the President and CEO of Strategy, the world’s first and largest Bitcoin Treasury Company and a global leader in AI and business intelligence software. He became CEO in 2022 after joining the company in 2015, where he previously served in roles including Chief Financial Officer and Chief Operating Officer. Prior to Strategy, Phong held leadership roles at Deloitte Consulting, Nextel International, and XO Communications. He earned a dual Bachelor of Science in Biomedical and Chemical Engineering from Johns Hopkins University and an MBA from the MIT Sloan School of Management.