Strategy Expands Capital Stack With Launch of High-Yield STRD Preferred Shares
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James Van Straten
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By James Van Straten|Edited by Parikshit Mishra
Jun 3, 2025, 8:39 a.m.
- Highest Yield in Strategy’s Preferred Suite: STRD offers a 10.00% fixed non-cumulative dividend surpassing both STRK (8%) and STRF (10% with greater seniority) and targets long-duration investors.
- Efficient Market Positioning: STRD compares favorably to peer preferred and high-yield instruments, with competitive yield and zero fees, backed by Strategy’s capital structure vision.
Strategy (MSTR) has launched its third perpetual preferred instrument, the Series A Stride Preferred Stock (STRD), as it continues building out a structured yield curve for its capital stack.
With a 10.00% non-cumulative fixed dividend and perpetual duration, STRD aims to provide long-term, high-yield exposure positioned between the firm’s senior preferred (STRF) and convertible preferred (STRK) offerings.
STORY CONTINUES BELOW
Unlike STRF, which offers a senior claim and is designed to be overcollateralized with lower volatility—comparable to investment-grade securities STRD is junior in seniority but delivers the highest yield of Strategy’s preferred offerings.
STRK, by contrast, sits between the two in both risk and return, offering an 8% fixed dividend and convertibility. At the base of the capital stack lies MSTR, the firm’s common stock and primary vehicle for leveraged bitcoin exposure.
According to Strategy, STRD is non-callable under normal conditions, but may be repurchased upon a “fundamental change” or select tax events. Its quarterly dividends are discretionary and paid in cash only when declared by the board.
In the broader market, STRD compares favorably against other preferred equity and high-yield bond funds. With a 10% yield and zero management fees, STRD offers a compelling alternative to ETFs like PFF (7% yield, 0.46% fee) and USHY (8% yield, 0.08% fee), while maintaining comparable volatility levels.
The STRD offering supports Strategy’s broader initiative to offer diversified, structured exposures that span from stable yield to high-conviction digital asset plays anchoring a new approach to capital structuring in the digital era.
James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its interplay with the macroeconomic environment. Previously, James worked as a Research Analyst at Saidler & Co., a Swiss hedge fund, where he developed expertise in on-chain analytics. His work focuses on monitoring flows to analyze Bitcoin’s role within the broader financial system.
In addition to his professional endeavors, James serves as an advisor to Coinsilium, a UK publicly traded company, where he provides guidance on their Bitcoin treasury strategy. He also holds investments in Bitcoin and Strategy (MSTR).
