Anchorage Digital Acquires Perpetual Preferred Stock in Bitcoin Treasury Firm

Anchoraged Digital, a pioneering crypto bank with a U.S. banking charter, has made a strategic investment in Strategy, a prominent bitcoin treasury firm. This acquisition of perpetual preferred stock is seen as a significant endorsement of Strategy's yield-generating financial product.

The perpetual preferred stock, known as Short Duration High Yield Credit (STRC), offers investors steady yields without an expiration date. It pays 11.25% annual dividends to holders, with its rate adjusted monthly to maintain stability around the $100 par value.

Anchorage Digital's investment in Strategy is a notable development in the crypto space, highlighting the growing confidence of institutional players in bitcoin-based financial products. The move may also inspire other firms to follow suit and invest in Strategy's preferred stock.