The strategy was introduced for a new and permanent state called Stride (STRD). Some call it a genius, others say it has a “ponzi atmosphere.”

On June 3, 2025, Strategy (formerly known as MicroStrategy) introduced a new permanent thing called Stride (STRD). Stocks allow investors to get 10% yield from Bitcoin without buying directly, but the strategy allows them to get cash to buy more Bitcoin. The new strain received a mixed reception from the Crypto community.

What is Stride?

Following the release of Strife and Strike, the strategy introduced a new preferred stock offering, Series A Priority Stock Stride (STRD). Stride is non-cumulative, permanent, not 10%. The 10% fixed dividend exceeds the 8% dividend for Strikes, but compared to the contest, there is less seniority and also a 10% dividend.

Stride is a major addition to the so-called three-piston Bitcoin engine of strategy, devising common stock MSTR and two other preferred stocks, STRK (STRF). The engine was intended to maximize the profits of the strategy by playing with the rarity and volatility of Bitcoin. At first glance, the strategy found ways to improve this engine by replenishing the fourth element.

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Stride is paid and has a higher yield than most ETFs. This makes it attractive to long-term investors. If basic changes are made, or for tax-related purposes, the Stride could be repurchased. The STRD dividend is discretionary and will be paid upon declaration by the Strategic Committee.

What are your concerns?

The new stock offering was recognized by some on Crypto Twitter as evidence of a strategic problem. Critics believe the company is trying to find a way to run out of cash and make quick money.

More than that, Coinbrow CEO and co-founder Nic Puckrin used X to ask questions about the offering of Stride. He is interested in the origin of the funds needed to pay dividends, and asks if the latter is used to fund STRD, if the new permanent common stock can dilute the common stock, and if the shares are not sold, there is a risk that the strategy will have to sell Bitcoin. Plus, not just a “Ponzi scheme,” Puckrin recommends paying funds from future investors to current investors. Bitcoin enthusiast Shanaka Anslem Perera answered these questions via X posts, claiming that the offering has a clear Ponzi Vibes.

The $4.222 billion net loss recognized by the strategy in the first quarter of 2025 burned skepticism alone. Dumping MSTR stocks on STRD investors' dividends can create tension within the Bitcoin engine and potentially hurt MSTR stock investors.

Why do some say that Stride is a genius move?

The current Bitcoin price is over $100,000, and debts of over $8 billion in the strategy are not considered an issue. According to Goldman Sachs, investors will only halt their investment in the strategy if BTC prices fall by half by 2027. So there are many optimistic comments from people who haven't seen the Stride Stock offering as a sign that the offering will not be able to acquire cash to buy more Bitcoin or pay off debts.

Adam Livingston, an MSTR investor and author of Bitcoin Age and Great Harvest, has posted a series of tweets describing the genius behind the new stock. However, for co-founder and chairman of strategy, Michael Saylor, the way he highlights how he moves well is worth noting. Livingstone puts it like that:

“Sailors can acquire cheap capital, don't dilute, pay for options, and get it at the core whenever they want.”

Livingstone claims that yields serve as a disguise for Bitcoin accumulation. He points out that if things get out of hand, the strategy argues that there is no obligation to pay dividends and that STRD will not dilute the float.

He said the new stock is not for Bitcoiners, but for those who feel reluctant to own Bitcoin, but want to give away at BTC. Institutional allocations and pension funds may also find STRD interesting.

Livingston outlines the STRD offering as a 10% yield for more Tradfi people, but Bitcoin veterans would rather see it as cheap capital to reduce market supply. Previously, Livingstone argued that the strategy would rewrite the rarity of Bitcoin and create a synthetic half. These financial equilibriums raise questions about the decentralization of Bitcoin and the spirit of the original Anti-Wallet Street, but from Michael Saylor's point of view, the strategy appears to have made its status even better.

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