Strategy’s CEO has promoted its high-yield STRC stock as a way to cover personal expenses, drawing attention to the risks tied to its dividend structure.
Summary
- Phong Le has promoted STRC as an income source for everyday expenses, citing its 11.5% variable dividend while acknowledging he invested $250,000 personally.
- Company disclosures from Strategy state dividends are not guaranteed and can be suspended, with no assurance of principal repayment.
- Le said about 80% of STRC holders are retail investors, identifying them as individuals managing mortgages, utility bills, and other financial obligations.
According to comments made by Phong Le on Natalie Brunell’s show, the executive described STRC as an income-generating asset that could help investors manage recurring costs such as mortgages, utility bills, and car payments. He said the stock’s variable dividends “almost looks like a paycheck,” while noting that payments arrive regularly.
Le disclosed that he had personally purchased $250,000 worth of STRC, explaining the decision through his own financial setup. He said he holds a 1.75% 30-year mortgage and viewed STRC’s current 11.5% annualized dividend as a way to earn a higher return instead of paying down that debt. He described the approach as earning income from the spread between the dividend yield and his borrowing cost.
Details published by Strategy on its STRC information page state that cash dividends are not guaranteed, while the company’s board retains the authority to suspend payments and adjust the dividend rate at any time. The same disclosures also note that the stock carries no assurance of principal repayment.
During the same appearance, Le compared the consistency of STRC payouts to a salary, although the company’s own documentation outlines conditions under which those payments can be reduced or halted.
Le also addressed the composition of STRC’s investor base, stating that roughly 80% of holders are retail participants. His remarks framed these investors as individuals managing everyday financial obligations, including mortgages and bills, placing them among the primary users of the product he described.
The discussion has drawn parallels to earlier remarks by Michael Saylor, who in March 2021 encouraged the use of leverage, including mortgages, to acquire Bitcoin. Unlike those comments, Le’s remarks focused on STRC rather than bitcoin, positioning the company’s own stock as a yield-based alternative.
In the same interview, Le also said STRC “grew faster than the iPhone,” referring to the pace of stock sales. Standard accounting definitions, however, distinguish capital raised through stock issuance from revenue generated through the sale of goods or services.
Compensation disclosures cited in public filings show that Le’s annual pay has exceeded $15 million, placing his personal investment example in a different financial context than the retail investors he described.