Investors May Be Piling Into Strategy’s Perpetual Preferred Shares on S&P 500 Inclusion Hopes

Strategy’s Preferred Shares Surge on Bitcoin Rally and S&P 500 Hopes

Bitcoin’s record-breaking close for June has sparked speculation around Strategy (MSTR), though broader factors like shifting interest rates are also driving investor decisions.

Investors have been actively buying Strategy’s perpetual preferred shares, betting on the bitcoin-focused firm’s potential addition to the S&P 500. Bitcoin’s strong June performance has boosted Strategy’s earnings to levels that may meet the criteria for joining the U.S. stock index, according to analysts.

Beyond the possibility of S&P 500 inclusion, the appeal of Strategy’s preferred shares comes from their high yields, which are above the Federal Reserve’s target range of 4.25%-4.5%. President Donald Trump’s calls for lower interest rates have made yield-generating investments like these even more attractive to investors.

While any decision about joining the S&P 500 isn’t expected until September, MSTR shares climbed 5% on Monday, closing above $400 for the first time since late May. The rally was even stronger in the perpetual preferred shares, with STRK surging 15%, STRF rising 7.5%, and STRD advancing 3%.

Bitcoin ended June priced at $107,750, adding an estimated $11 billion to Strategy’s earnings. Analyst Jeff Walton projects this would boost the company’s earnings per share to around $39.50, allowing Strategy to post a net positive result over the past four quarters—a key requirement for joining the S&P 500.

Companies often see their stock prices rise upon joining the S&P 500, as institutional investors are drawn to stocks within the index.

STRK rose to $121, yielding 6.6%. Since its launch on February 6, STRK has delivered a 42% return, significantly outperforming bitcoin’s 11% gain and the S&P 500’s modest 2% rise in the same period, excluding dividends. Meanwhile, STRF is yielding 8.8%, and STRD is offering an even higher yield of 11.1%.

All of this leaves the question: Are investors positioning ahead of a potential S&P 500 inclusion for MSTR—or simply chasing high yields amid evolving market conditions?