Robinhood Expands With Strategy’s Bitcoin-Backed Stocks Listing

Robinhood, a leading financial company, has listed Bitcoin-backed stocks from Strategy, making it easier for regular investors to access tokenized credit. 

According to the announcement, this listing of $STRC, $STRD, $STRF, and $STRK, Strategy’s digital credit tokens, is seen as a major step forward in the digital asset industry. It aims to transform Bitcoin into a productive asset that can generate income.

Retail Investors Now Gain Exposure to Bitcoin-backed Earnings

Strategy’s innovative model utilizes Bitcoin reserves to support stocks that act like equities, creating a link between crypto assets and traditional markets. With its digital credit tokens now available on Robinhood, retail investors can gain exposure to Bitcoin-backed earnings. This can be done without the need to buy or manage the cryptocurrency directly.

Notably, industry analysts view this as a significant step that supports the BTC credit model developed by Michael Saylor, the founder of Strategy. This model redefines Bitcoin as more than just a store of value. It positions Bitcoin as collateral that can be trusted for loans and generating returns.

The $STRC differs from traditional financial tools because it links Bitcoin reserves with returns specifically designed for retail investors. This opens up complex credit strategies to everyday investors, who usually do not have access to them. This listing also represents a shift in how traditional finance platforms deal with digital assets. 

Robinhood’s Listing Comes With Benefits

By offering Bitcoin-backed stocks, Robinhood shows that it is a modern platform that provides new investment opportunities linked to cryptocurrency. This approach is safe and user-friendly. Additionally, it will help Robinhood to increase its revenue, engage more users, and improve its market position without taking on too many crypto regulatory risks.

Recall that Robinhood planned to tokenize stocks on its new Ethereum-compatible blockchain in July. As reported, the move would allow asset trading outside traditional exchange hours, leveraging Robinhood’s acquisition of crypto exchange Bitstamp to expand its on-chain presence.

Robinhood CEO Vlad Tenev unveiled “Robinhood Chain,” an Ethereum-compatible layer-2 on Arbitrum Orbit. This is aimed at enabling users to trade tokenized stock derivatives. He explained that Robinhood Chain will provide users with tokenized derivatives linked to real stocks custodied by a U.S. broker-dealer. Users will be able to self-custody these tokens or interact with decentralized applications. 

Strategy Raises Funds Through Preferred Stock Offering

In July, the Nasdaq-listed firm raised new funds through the sale of its special class of stock. Undoubtedly, this step is part of its ongoing plan to invest heavily in Bitcoin. Strategy sold 28 million shares of its Series A Stretch Preferred Stock (STRC). Each share was priced at $90 through an initial public offering (IPO).

This new STRC stock would pay investors a monthly dividend at a 9% yearly rate. This is based on a $100 value per share. Meanwhile, Strategy’s unending Bitcoin accumulation has made it one of the largest corporate holders of Bitcoin in the world, outpacing Nvidia.