Michael Saylor Says Strategy's STRC Is Now Steadier Than The S&P 500's Biggest Tracker: ‘A Milestone For Digital Credit’

Strategy's (MSTR) Michael Saylor said the company's Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) was now less volatile than the SPDR S&P 500 ETF Trust (SPY), calling the move "a milestone for Digital Credit" on Saturday.

Saylor put STRC's 30-day historical volatility at 9%, against 10% for SPY. "We're harnessing the power of Bitcoin while reducing price volatility for income investors," he said.

"This is what financial engineering should do." SPY is a fund that tracks the S&P 500 (SPX) and trades like a stock.

Where STRC Ranks On Volatility

The chart measured STRC against funds that stood in for each major asset class. Strategy's own common stock was the most volatile line at 94%, with Bitcoin at 39%. SPDR Gold Shares (GLD), which tracks bullion, stood at 24%. The Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 index, was at 15%, and the Vanguard Real Estate ETF (VNQ) at 11%.

Only one line sat below STRC. The Vanguard Total Bond Market ETF (BND) came in at 5%, which placed Strategy's preferred between stocks and bonds on its own chart.

MSTR stock closed almost flat on Friday, down by 0.31%. On Stocktwits, the retail sentiment around MSTR remained in the ‘bullish’ zone, while chatter around it stayed at ‘normal’ levels over the past day.