High-Yield STRD Preferred Shares Launched to Expand Strategy’s Capital Foundation

Strategy Introduces High-Yield STRD Preferred Shares to Enhance Capital Structure

Strategy (MSTR) has unveiled its third perpetual preferred stock series, the Series A Stride Preferred Shares (STRD), offering investors a 10% fixed non-cumulative dividend and long-duration yield exposure within its tiered capital framework.

Positioned below the senior preferred shares (STRF) but above the convertible preferred shares (STRK), STRD provides the highest yield among Strategy’s preferred offerings, balancing elevated return potential with moderate seniority risk.

While STRF is designed as a senior, overcollateralized instrument with low volatility similar to investment-grade securities, STRD targets investors seeking stronger income with acceptable risk. The STRK shares, featuring an 8% dividend and conversion rights, serve as a middle ground, with common stock (MSTR) at the base providing leveraged exposure to bitcoin.

STRD shares are non-callable under normal circumstances, with repurchase options limited to fundamental changes or specific tax events. Dividends are discretionary, paid quarterly in cash when declared by the board.

With no management fees and a 10% yield, STRD offers a compelling alternative to preferred equity and high-yield bond ETFs like PFF (7% yield, 0.46% fees) and USHY (8% yield, 0.08% fees), while maintaining similar risk levels.

This issuance underscores Strategy’s commitment to constructing a diversified and structured capital stack, delivering a spectrum of yield and risk profiles that align with the demands of the digital asset investment landscape.