Michael Saylor quoted a CNBC TV anchor who repeated his advertising and marketing spiel about STRC on dwell tv.
On Thursday’s version of CNBC’s Energy Lunch, Saylor was requested by host Brian Sullivan, “Am I offending you if I call it a money market fund?”
Sullivan was referencing Technique’s publicly-traded STRC, a 11.5% dividend-paying most well-liked share that’s undoubtedly not a cash market fund.
Saylor, who’s spent months likening his uninsured STRC to insured financial savings merchandise like FDIC-insured financial institution accounts and SIPC-insured cash markets fortunately agreed.
“It’s meant to be like a money market,” Saylor replied, persevering with months of deceptive statements concerning the shares which might be purported to commerce close to $100 but have traded beneath $93.50 on 10 separate days.
He later tweeted the clip, declaring that his firm’s digital credit score merchandise are one way or the other “redefining” yield.
Sadly, STRC is paying 11.5% for a cause, largely as a result of Technique hasn’t been in a position to decrease that fee and maintain demand for STRC’s share worth close to its meant $100 said quantity.
STRC can be nothing like a cash market fund, and in accordance with Bloomberg, 80% of STRC patrons have been retail buyers, quite than subtle establishments.
STRC versus an precise cash market fund
In contrast to a cash market fund, Technique isn’t required to carry full belongings to again STRC’s par worth, has no bid within the Nasdaq market to help its share worth, isn’t required to take care of any specific pricing worth of buyers’ principal, and has no liquidity requirement to help redemptions.
SEC-registered cash market funds should adjust to Rule 2a-7 and its liquidity minimums and asset diversification guidelines.
Cash markets preserve steady internet asset values by investing in short-term, high-quality debt.
STRC, in distinction, doesn’t adjust to cash market rules and invests in some of the unstable belongings in historical past, bitcoin (BTC).
In contrast to a cash market fund, STRC pays a dividend from an organization with a junk “B-” credit standing from S&P analysts. That very same firm reported a $12.4 billion internet loss in a single quarter.
US cash market funds carry SIPC protections when bought via a registered US brokerage. Financial institution cash market accounts carry FDIC insurance coverage. STRC carries no insurance coverage.
Technique itself admitted on web page 90 of its earnings presentation that STRC isn’t a cash market fund.
The corporate conceded that it’s “not required to hold any assets to back the STRC Stock.” That disclosure didn’t cease Saylor and Sullivan from floating the comparability on nationwide tv.
Nor did it cease Saylor from enthusiastically agreeing.
$100 or $90.52 per share, relying on the day
Cash market funds shouldn’t lose greater than 7% of their worth in just a few hours. STRC has, repeatedly.
The inventory fell to $90.52 in November 2025 and to $93.10 in February 2026. Technique hiked its dividend fee seven occasions since launch to encourage secondary buying and selling nearer to $100.
Its dividend fee, which began at 9% in July 2025, now sits at 11.5%, a 250 foundation level enhance.
In the meantime, BTC trades close to $66,000, nicely under Technique’s common buy value of $75,694 per coin. The corporate’s whole BTC operation has misplaced cash since inception, whereas MSTR frequent inventory has declined 74% from its November 2024 excessive.
Saylor instructed Sullivan that BTC wants to understand simply 2% a 12 months to cowl STRC’s dividends without end.
Nonetheless, he conveniently omitted that his mannequin solely works for MSTR shareholders if BTC rallies 30% yearly, a forecast he has repeated for years however that BTC’s five-year annualized return hasn’t delivered.
Certainly, Saylor has in contrast STRC to insured merchandise for months.
He described it on CNBC as “a bank that pays you 20% interest.” On an earnings name, he advisable STRC “for your family treasury.”
Extremely, STRC raised over $1.18 billion in a single week this month, suggesting that comparisons like Sullivan’s are working precisely as meant.
Sullivan’s framing of STRC as a cash market fund could have been informal. For the retail buyers shopping for STRC on the idea of those comparisons, the distinction between a cash market fund and a junk-rated perpetual most well-liked inventory is something however.
