Surge in Strategy’s Perpetual Preferred Shares Fueled by Bitcoin Gains and S&P 500 Speculation
Bitcoin’s historic monthly close has ignited speculation surrounding Strategy (MSTR), though broader economic shifts, like potential changes in interest rates, are also influencing investor moves.
Strategy’s perpetual preferred shares have seen heightened activity as investors speculate on the bitcoin-focused company possibly joining the S&P 500. Bitcoin’s robust performance in June has lifted Strategy’s earnings to levels that could qualify it for inclusion in the major U.S. index, according to analysts.
However, interest in Strategy’s preferred shares may also stem from their attractive yields, which exceed the Federal Reserve’s target range of 4.25%-4.5%. With President Donald Trump advocating for lower interest rates, yield-focused investors are finding these instruments appealing.
An official decision about S&P 500 inclusion isn’t expected before September, but MSTR shares jumped 5% on Monday, surpassing $400 for the first time since late May. Gains were even stronger among the company’s perpetual preferred shares, with STRK soaring 15%, STRF increasing 7.5%, and STRD up 3%.
Bitcoin wrapped up June at $107,750, contributing roughly $11 billion to Strategy’s earnings. Analyst Jeff Walton estimates this pushes the company’s earnings per share to approximately $39.50, enabling Strategy to report positive net earnings across the past four quarters—a key condition for S&P 500 eligibility.
Companies often see their stock prices climb after joining the S&P 500, as index inclusion draws institutional investors who are limited to holding benchmark-listed equities.
STRK climbed to $121, offering a yield of 6.6%. Since its debut on February 6, STRK has generated a 42% return, significantly outpacing bitcoin’s 11% gain and the S&P 500’s modest 2% rise during the same period, excluding dividends. Meanwhile, STRF provides a yield of 8.8%, and STRD offers an even higher yield of 11.1%.
These developments raise the question: Are investors positioning in anticipation of Strategy’s potential inclusion in the S&P 500—or simply chasing high yields amid shifting macroeconomic dynamics?
