Michael Saylor once again compared STRC to money market funds, sparking a retail frenzy.

Gate News reports that Michael Saylor, founder of Strategy, compared its publicly traded STRC stock to a money market fund during a CNBC program, attracting market attention. STRC is a preferred stock with a dividend yield of 11.5%, not a money market fund, and is not protected by FDIC or SIPC insurance. However, Saylor has repeatedly described it on television and Twitter as an investment tool similar to insured savings products.

During the program, host Brian Sullivan asked, “Would you be offended if I called it a money market fund?” Saylor responded that STRC was supposed to function like a money market fund and continued to promote its yield potential. However, STRC’s stock price has been quite volatile, dropping below $93.50 multiple times in the past ten trading days, far below its target price of $100. The high dividend of 11.5% is primarily due to Strategy’s failure to maintain the stock price and lower interest rates.

The differences between STRC and real money market funds are significant. Money market funds must comply with SEC Rule 2a-7, investing in short-term, high-quality bonds to maintain a stable net asset value, while STRC invests in Bitcoin and is issued by a company with a credit rating of B-, with its stock price and principal not subject to regulatory protection. Although the company clearly states in its financial reports that STRC is not a money market fund, Saylor continues to repeat his analogy on national television, attracting a large number of retail investors.

Starting in July 2025, the dividend yield for STRC increased from 9% to 11.5%, encouraging secondary market trading to support the stock price, while the price of Bitcoin remains far below Strategy’s average acquisition cost, putting the entire Bitcoin business in a long-term loss situation. Saylor has claimed that Bitcoin only needs to rise 2% annually to cover the STRC dividend, but in reality, his model requires an annualized appreciation of 30% for Bitcoin, which has not been achieved over the long term.

Despite the obvious risks, STRC has attracted over $1.18 billion in inflows in the short term, showing that Saylor’s promotional strategy has a powerful influence on retail investors. Analysts warn that investors should distinguish between money market funds and high-risk preferred stocks to avoid misjudging the safety and yield stability of STRC.