Strategy Introduces New 10% Yield Perpetual Preferred Shares to Enhance Capital Structure
Strategy (MSTR) has unveiled its third perpetual preferred stock offering, the Series A Stride Preferred Stock (STRD), further expanding its structured capital stack with a focus on long-duration, high-yield exposure.
The STRD shares carry a fixed non-cumulative dividend of 10.00% and have no maturity date, positioning them between the company’s senior preferred shares (STRF) and convertible preferred shares (STRK) in terms of seniority and risk.
While STRF offers senior claims and overcollateralization aimed at lower volatility similar to investment-grade assets, STRD ranks junior to STRF but offers the highest yield among Strategy’s preferred stock series.
STRK occupies a middle ground, featuring an 8% fixed dividend with an option to convert, balancing risk and return. The firm’s common stock (MSTR) remains at the base of the capital stack, serving as the primary leveraged bitcoin investment vehicle.
STRD shares are non-callable under typical circumstances but may be redeemed upon fundamental corporate changes or specific tax events. Dividends are discretionary, paid quarterly in cash only when declared by the board.
Compared to similar offerings in the market, STRD’s 10% yield and absence of management fees present a competitive alternative to popular ETFs like PFF, which yields 7% with a 0.46% fee, and USHY, which offers 8% with a 0.08% fee, while maintaining comparable risk levels.
This latest issuance aligns with Strategy’s goal of delivering a diversified suite of structured products, ranging from stable income streams to high-conviction digital asset investments, representing a modern approach to capital allocation in the evolving digital landscape.
