Strategy CEO Suggests Mortgaging Homes to Buy High-Yield STRC Stock — But Is It a Smart Move?

In 2021, Michael Saylor, founder of Strategy (formerly MicroStrategy), urged investors to leverage their assets—even by mortgaging their homes—to purchase bitcoin (BTC). Five years later, Strategy’s current CEO, Phong Le, is making a similar pitch, but this time for Stretch (STRC), a high-risk stock offering variable dividends.

Le made the remarks during an appearance on Natalie Brunell’s Bitcoin show, where he compared STRC’s dividends to a steady paycheck. However, unlike a traditional paycheck, STRC’s dividends are not guaranteed and can be suspended or adjusted at any time by the company’s board.

He framed the strategy as a way to cover monthly obligations, stating:

“I have monthly obligations. I have a 1.75% 30-year mortgage, right? And if I can, instead of paying down that mortgage, put it into an instrument that pays me 11.5%, that’s 10x my mortgage rate. I’m essentially making money by taking the money, putting it into STRC, getting 11.5%, and paying off my 1.75% mortgage.”

Le also revealed that he personally invested $250,000 in STRC last week, calling it an “experience” he enjoys. Yet, his own financial position contrasts sharply with the majority of STRC’s shareholders. According to Le’s own disclosure, 80% of STRC stockholders are retail investors—individuals far more vulnerable to financial hardship and less equipped to absorb losses.

Le’s comparison of STRC’s dividends to a paycheck glosses over a critical distinction: a paycheck cannot be canceled, whereas STRC’s dividends can be suspended at any time, as explicitly stated on the company’s own STRC information page.

Adding to the controversy, Le incorrectly claimed that STRC’s stock sales grew faster than the iPhone’s early revenue. However, selling stock does not generate revenue—it raises capital. Revenue refers to earnings from business operations, not stock issuance.

For context, Strategy’s leadership has a history of high-risk financial strategies. The company’s aggressive bitcoin purchases under Saylor’s tenure drew both praise and criticism. Now, with Le advocating for mortgaging homes to buy STRC, the question remains: Is this a savvy financial move, or another high-stakes gamble for retail investors?

Key Takeaways:

• STRC offers 11.5% annualized dividends, but payments are variable and not guaranteed.
• 80% of STRC shareholders are retail investors, making them the most exposed to financial risk.
• Strategy’s CEO Phong Le recently invested $250,000 in STRC and suggests others do the same.
• Dividends can be suspended at any time, unlike a traditional paycheck.
• Le’s comparison to the iPhone’s growth is misleading—stock sales do not equal revenue.