Launch of High-Yield STRD Preferred Shares Boosts Strategy’s Capital Structure

Strategy Unveils STRD Preferred Shares with 10% Yield to Enhance Capital Structure

Strategy (MSTR) has introduced its third perpetual preferred stock series, the Series A Stride Preferred Shares (STRD), aimed at delivering high-yield, long-duration income to investors.

Featuring a fixed 10.00% non-cumulative dividend, STRD ranks below the senior preferred shares (STRF) but above the convertible preferred shares (STRK) in seniority, offering a compelling yield option within Strategy’s layered capital framework.

The senior STRF shares provide lower risk and overcollateralization akin to investment-grade securities, while STRD offers investors a higher return in exchange for a more junior position. Meanwhile, STRK shares provide an 8% dividend with the added feature of convertibility, bridging the risk-return spectrum.

At the base is MSTR common stock, which serves as the company’s primary vehicle for leveraged bitcoin exposure.

STRD shares are non-callable under standard conditions but may be redeemed following significant corporate changes or certain tax events. Dividends are discretionary and paid quarterly in cash when approved by the board.

In comparison to other preferred equity and high-yield bond funds, STRD stands out with a 10% yield and zero management fees, presenting an attractive alternative to ETFs like PFF (7% yield, 0.46% fees) and USHY (8% yield, 0.08% fees), while maintaining similar volatility.

This launch reflects Strategy’s ongoing efforts to create a comprehensive capital stack that balances stable income with exposure to high-conviction digital assets, addressing the demands of investors in the digital financial era.