Strategy (previously MicroStrategy) has launched a $2.521B Bitcoin-backed investment product so that investors can earn up to 9% annual returns.
Named the ‘Stretch Preferred Stock’ (STRC), it doesn’t give investors direct exposure to $BTC. Instead, it uses the crypto’s strong historical performance to support steady, high-yield payouts.
But as Bitcoin dives deeper into TradFi, the network is bound to face growing pressure to evolve. Even before this heightened demand, it struggles with limitations, like slow transactions and limited programmability.
Thankfully, Bitcoin Hyper ($HYPER) will fix such woes. Once deployed in Q3 2025, the Layer 2 network promises to unlock critical utility for Bitcoin as the network continues to attract both DeFi and TradFi attention.
STRC Tops Venture Capital as Largest US IPO
Strategy is using its hefty $BTC treasury as a financial backbone to create a stable, income-generating product. And its attention is already unmatched.
Given that the STRC has already raised $2.521B, it has quickly become the most extensive US initial public offering (IPO) of 2025 so far. It even outpaces prominent names like Venture Global and CoreWeave.
All the proceeds made from the stock offering will go toward corporate needs, which involve snagging more $BTC. And it won’t be small amounts.
Just days before the STRC’s launch, Strategy scooped up an additional 6,220 $BTC for $739.8M, pushing its total holdings to 607,770 $BTC (at the time of writing, it’s worth a whopping $72.27B).
The hype surrounding STRC not only shows growing interest in $BTC-backed investment products but signals Wall Street’s increasing interest in crypto-powered income strategies.
STRC Stands Out With 9% Yield & SOFR Volatility Guardrails
What boosts the stock’s appeal is that it’s designed to trade at $100 per share based on Bitcoin’s tendency to average out a 3-4% annual return. Plus, the fact that it offers monthly dividend payments starting at a 9% annualized rate.
The payout isn’t fixed; it may fluctuate based on market conditions. However, Strategy is aware of such challenges, so has guardrails in place to protect investors from sudden or arbitrary drops.
Any changes to the payout must follow a well-established interest rate called the Secured Overnight Financing Rate (SOFR). As such, the company cannot simply lower it without justification. Suppose Strategy misses a payment, interest will accrue and be paid later.
This ensures that investors still get paid what they’re owed – even if Strategy temporarily pauses monthly payouts.
Moreover, once the shares are listed on the Nasdaq or NYSE, Strategy has the right to redeem them at $101 per share, including any unpaid dividends. Additionally, if the company undergoes any major changes, investors can request that Strategy buy back their shares at full value.
Each of these features helps keep the stock price steady (at roughly $100), while offering higher returns than most short-term investments that you’d find in traditional finance.
It also shifts the narrative around $BTC being a volatile asset to a productive store of value. Consequently, it’s a major win for #1 crypto (currently valued at a hefty $119K, up by over 10% compared to last month), as well as the broader Bitcoin ecosystem.
But as Bitcoin moves deeper into TradFi, the network is bound to face growing pressure in order to evolve. But fear not: Bitcoin Hyper ($HYPER) is set to launch to extend the network’s capabilities.
Bitcoin Hyper to Redefine Bitcoin’s Capabilities
Bitcoin Hyper goes beyond being yet another Layer 2 network; it’s the infrastructure that’s highly necessary to update Bitcoin as it continues attracting unprecedented attention.
Once launched in the coming months, it promises to solve the blockchain network’s most pressing challenges: slow transaction speeds, high fees, and the lack of native smart contracts.
It’ll integrate the Solana Virtual Machine (SVM) to make the network fast and inexpensive, similar to Solana.
This upgrade will also unlock key features, including high-performance dApps, DeFi protocols, the launch of the best meme coins, and real-world asset (RWA) tokenization.
Notably, a Canonical Bridge is the foundation of the entire Layer 2 network. It’ll allow $BTC to flow seamlessly between the Layer 1 and Layer 2. This way, you’ll be able to tap into Bitcoin’s original security while relishing the speed and flexibility of a modern smart contract platform.
The platform’s native token, $HYPER, powers the network through governance, cost-friendly gas fees, and staking rewards (of which are currently valued at a commendable 189% APY).
Since its May 2025 presale debut, $HYPER has already raised over $5.4M. Its success is fueled by whales, three of whom injected $74.9K, $54.1K, $53.9K, which highlights long-term confidence in the Layer 2’s capabilities from the get-go.
Join the Bitcoin Hyper Presale for Possible 185% Returns
Strategy’s Stretch Preferred Stock is a significant step forward for Bitcoin’s role in TradFi.
The main reason is that it gives income-focused investors a way to benefit from $BTC’s long-term performance without dealing with rapid price swings often seen in crypto.
STRC’s size and demand show that investors are warming up to $BTC-backed financial products at a quick pace. But does Bitcoin alone have the infrastructure to support this level of adoption? The answer is no.
Thankfully, Bitcoin Hyper is poised to address the network’s pain points. It’ll unlock the performance needed to take Bitcoin to the next level.
We’re not financial advisors. Always DYOR and don’t invest more than you’re willing to lose.
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