Influencer likens MicroStrategy's STRC to an insurance policy

Cryptocurrency influencer David Battaglia has compared MicroStrategy's (MSTR) preferred stock, STRC, to an insurance product, according to a post on X. He explained that MicroStrategy's sale of STRC is analogous to an insurance company selling an annuity, where it collects capital—similar to an insurer's float—and invests it in Bitcoin before obligations are due. Battaglia described the company's stock as a vehicle for aggressive investors to gain exposure to BTC's upside by paying a premium, adding that its transparent, real-time model refutes any claims of it being a Ponzi scheme, which he attributed to "haters." MicroStrategy's STRC aims to pay a monthly variable dividend targeting 11.5% annually, with the yield adjusting inversely to its price relative to the $100 par value. The stock has recently been a key source of funding for the company's Bitcoin acquisitions. The post was later retweeted by MicroStrategy founder Michael Saylor.