Benchmark: STRC from Strategy could become a profitable stablecoin platform

Benchmark's assessment of Strategy's flagship preferred stock, STRC, is gradually becoming the foundation for a new generation of stablecoins and savings tokens backed by yields within the Bitcoin ecosystem.

Originally issued to raise funds for purchasing more Bitcoin, STRC is a perpetual preferred stock that pays monthly dividends and features a yield adjustment mechanism to keep its trading price around a par value of $100. Recently, CEO Michael Saylor announced that the March dividend for STRC was increased to 11.5%, up from 11.25%.

According to Benchmark analyst Mark Palmer, STRC is expanding its role from a financing tool to a core financial infrastructure for profit-generating stablecoin protocols.

Several projects have begun integrating STRC. Buck Labs uses this stock as a yield source for a USD-pegged savings token, while Saturn Labs is testing a collateral model combining US Treasury bonds and Strategy's preferred stock. Another project, Apyx, is developing a stablecoin backed by dividends from preferred stocks of Bitcoin-accumulating companies.

Benchmark believes this structure could create a reinforcing loop: Strategy issues STRC to raise capital for more Bitcoin purchases, while crypto protocols buy STRC to generate yields for their products.

This analysis firm maintains its "buy" recommendation and a target price of $705 for Strategy's MSTR stock, representing an approximately 380% increase from the current price around $147.