Saylor: Strategy STRC Volatility Now Below SPY

Michael Saylor, chairman of Strategy, stated on Saturday that the company's Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, has recorded lower 30-day historical volatility than the SPDR S&P 500 ETF Trust, or SPY. Saylor characterized the shift as a milestone for digital credit, noting that STRC's volatility sits at 9% compared to 10% for SPY. He said the structure allows the firm to harness Bitcoin while reducing price volatility for income investors. A chart provided by Strategy measured STRC against several major asset-class proxies. Strategy's common stock, MSTR, showed the highest volatility at 94%, followed by Bitcoin at 39%. The SPDR Gold Shares ETF, GLD, tracked bullion with 24% volatility, while the Invesco QQQ Trust, QQQ, which tracks the Nasdaq-100 index, stood at 15%. The Vanguard Real Estate ETF, VNQ, registered 11%. The only asset with lower volatility than STRC was the Vanguard Total Bond Market ETF, BND, at 5%. This placement positions Strategy's preferred stock between traditional equity and bond instruments in Saylor's framework.

MSTR shares closed down 0.31% on Friday. On Stocktwits, retail sentiment for MSTR remained in the bullish zone with normal chatter levels. In contrast, SPY closed higher on Friday, with retail sentiment moving to extremely bullish from bullish while chatter levels stayed normal. Saylor outlined a three-tier framework for Bitcoin treasury companies on Wednesday. He classified Bitcoin as digital capital, STRC and Strive's SATA as digital credit, and common stock as digital equity. He argued that digital credit competes for income allocations against private credit, high-yield bonds, preferred securities, and bond or income ETFs. Consequently, Saylor maintained that STRC belongs in an income investor's bond sleeve rather than a crypto allocation. He also expressed support for Strive, a rival issuer, citing SIFMA figures that placed global equity market capitalization at $157.8 trillion and global fixed-income debt at $160.7 trillion at the end of 2025. Saylor noted that one-tenth of one percent of either total would equal roughly $160 billion.

The current volatility figures differ from claims made in March. At that time, Saylor stated that STRC had less volatility than every S&P 500 company and major asset class over 30 days while paying an 11.5% dividend yield. A chart from that period showed STRC at 2% volatility and BND at 6%. Since then, volatility across the tracked assets has declined. Bitcoin dropped from 50% to 39%, GLD fell from 37% to 24%, QQQ decreased from 19% to 15%, and SPY dropped from 15% to 10%. STRC reached a record-low volatility of 1.5% in March before rising to its current level above BND. Saylor cautioned that Bitcoin appreciation is uncertain and that Bitcoin itself pays no coupon. He wrote that the margin between long-term asset returns and financing costs must be earned through management and is not a locked-in interest spread. He added that downside risks in Bitcoin prices, credit spreads, and equity multiples can compound just as quickly as upside factors.