Saylor reveals Strategy's STRC was designed with AI

Strategy founder Michael Saylor said in a December 20, 2025 interview with CoinDesk that STRC (Stretch), the firm's preferred-stock credit instrument, was largely designed with the help of AI. According to Saylor, he spent several hours discussing the product structure with AI to build a monthly preferred share capable of holding a stable $100 value.

Why it matters

Saylor said the AI told him no prior instrument matched the structure, then confirmed it was "totally legal" and "totally reasonable." The admission reframes STRC as a retail-facing credit product whose design was stress-tested against an LLM rather than underwriter judgment or a formal credit committee — a notable disclosure for an exchange-listed perpetual preferred pitched to yield-sensitive income buyers.

Market impact

The disclosure lands while the peg itself is wobbling. STRC has traded as low as $82.7 and most recently closed near $88.8, with community attention now focused less on the yield mechanics and more on whether the $100 reference is structural. Any further slip below the implied band would test the redemption-arb thesis Saylor has been selling alongside the structure.