By September 29, Michael Thaler had compared it to money markets and high-yield bank accounts, and admitted he had not been able to sell any of his $4.2 billion worth of Stretch (STRC) at-the-market (ATM) products, despite plans to expand to accommodate euro, pound and yen investors around the world.
On July 31, 2025, Saylor Strategies asked Morgan Stanley, TD, Barclays, and other financial giants to sell up to tens of thousands of STRC shares at prevailing market prices.
The company created this system on July 31st, but it has not been utilized at all. STRC ATMs worth $4.2 billion remain undeveloped and available for issuance and sale.
The only major sale in STRC's initial public offering (IPO) was on July 29, when the company sold $2.52 billion. The current total face value of STRC is small slightly higher at $2.8 billion.
This slight increase is due to post-IPO price adjustments for STRC, whose outstanding shares as of September 30th were 28,011,111 shares, which have not increased since its July 29th IPO.
STRC bearish trading behavior since July
One possible explanation for why Saylor's STRC ATM remains undeveloped is that for most of its short life, it has traded well below its intended quasi-fixed price of $100.
Since beginning trading on July 30, STRC has traded between $92.20 and $100, spending most of that period in the lower part of that range.
If investors lose confidence in the company's ability to recover its price to $100, STRC will trade lower.
Strategy recently fulfilled its dividend obligation. STRC rebounds to near $100.
The company generously pays STRC holders a generous 10.25% on the full $100 listed price, regardless of the purchase price, so if Strategy sells STRC for significantly less than $100, the company will have less cash to raise, but its dividend obligation will remain at $100 per share.
For this reason, Saylor may have had no desire to wiretap ATMs while STRC struggled to regain its quasi-peg. The company may continue to use STRC ATMs.
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STRC has a bullish outlook despite ATM success rate of $0
In addition to total notional debt of $8.2 billion, Strategy has four classes of preferred stock with dividends: STRK, STRF, STRD, and STRC.
Broadly speaking, STRK pays 8% on conversion rights if Strategy common stock (MSTR) rises above $1,000, STRF pays 10% on capital stack seniority, STRD is a high-yield junior, and STRC pays a floating rate (currently 10.25%) on a semi-fixed USD price.
Over the past few months, Thaler has been particularly vocal about STRC compared to these other services. During an interview with Bloomberg, he expressed his intention to consider STRC's proposal for foreign currencies, but declined to predict more types of preferred stock.
He also referred to STRC as “High-yield bank accounts with yields of 10% or moreSTRC is not a principal-guaranteed investment, but it is a “short-term money market that has yielded double or triple profits.”
