Strategy Launches STRD Preferred Shares Offering 10% Yield to Strengthen Capital Stack
Strategy (MSTR) has rolled out its third perpetual preferred stock series, the Series A Stride Preferred Shares (STRD), designed to deliver a high-yield, long-term income stream within its structured capital hierarchy.
The STRD shares carry a fixed 10.00% non-cumulative dividend and occupy a junior position below the senior preferred shares (STRF) but senior to the convertible preferred shares (STRK), providing investors with an attractive yield option amid a tiered capital structure.
While STRF shares offer a senior, overcollateralized claim with investment-grade-like stability, STRD emphasizes higher yield potential with correspondingly increased risk. STRK shares, offering an 8% dividend plus conversion rights, sit between these two in terms of risk and reward. The common shares (MSTR) remain the company’s leveraged bitcoin exposure vehicle.
STRD is non-callable under typical circumstances but can be repurchased in cases of fundamental corporate changes or specific tax-related events. Dividends are discretionary, paid quarterly in cash, and subject to board approval.
Compared to other preferred equities and high-yield fixed income funds, STRD’s 10% yield and absence of management fees make it a competitive choice versus ETFs such as PFF (7% yield, 0.46% fees) and USHY (8% yield, 0.08% fees), while preserving comparable risk profiles.
This new preferred stock issue advances Strategy’s vision to offer a diversified capital stack that caters to investors seeking stable income alongside exposure to digital asset innovation in today’s evolving market landscape.
