STRC Flips Tesla In Tokenized Growth – MSTR CEO Says ‘Yield-Starved’ Market Behind Surge

• In an interview with Paul Barron, Strategy CEO Phong Lee attributed the STRC’s growth to demand for yield in a low-return environment.
• He also refuted Peter Schiff’s allegations that “Stretch” shares constitute a Ponzi scheme, stating that the product is transparent and not the result of financing engineering.
• He noted that skepticism is expected given the novelty of the structure, particularly among investors unfamiliar with Bitcoin-linked strategies.

Tokenized versions of Strategy’s (MSTR) preferred “Stretch” shares (STRC) have overtaken Tesla (TSLA) itself to become one of the fastest-growing products in the tokenized equities market.

According to CoinGecko data, Circle Internet Group (CRCL) leads the tokenized stock category with a market capitalization of $155 million on Ondo. Strategy’s STRC follows with $55 million, and Tesla comes in third with a tokenized market value of $52 million.

Strategy CEO Phong Lee attributed the surge to investor demand for yield in a low-return environment. “We’re in a yield-starved environment right now… anything where you can get 11.5% paid monthly… is something people are interested in,” he said in an interview with Paul Barron. 

STRC’s stock was trading below par at around $99.66 in midday trade. Retail sentiment around the variable preferred shares on Stocktwits trended in ‘bullish’ territory over the past day, accompanied by ‘normal’ levels of chatter.

Meanwhile, MSTR’s stock moved 1.6% lower to below $170. Retail sentiment dipped to ‘bullish’ from ‘extremely bullish’ territory over the past day, while chatter stayed at ‘high’ levels. 

MSTR CEO Claims STRC Is Too Transparent To Be A ‘Ponzi Scheme’

STRC’s rapid growth from $2.8 billion to $8.5 billion has ruffled some feathers, including those of Bitcoin (BTC) critic Peter Schiff. Earlier this week, Schiff called STRC a ‘Ponzi Scheme’ in a post on X and held two X spaces, inviting Michael Saylor or anyone who would be open to refuting this claim.

Lee pushed back firmly on that narrative, emphasizing transparency and structure. “The definition of a Ponzi is something that’s non-transparent… none of that applies here,” he said. “We are taking the proceeds of Stretch and putting it into Bitcoin… It’s very clear what we’re doing.” 

Lee added that he understood why some would be skeptical, given the product's high yields. While the idea “sounds quite novel,” he said, it is enabled by Bitcoin’s performance, not financial engineering gimmicks. 

Bitcoin’s price dipped 0.8% in the last 24 hours to around $77,700. Retail sentiment around the apex cryptocurrency on Stocktwits remained in ‘bullish’ territory over the past day, while chatter fell to ‘normal’ from ‘high’ levels.

Read also: HOOD, COIN Stocks Gain Despite Fresh Lawsuit Calling Prediction Markets A ‘Public Nuisance’ – Challenging CFTC Authority

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