Back to Previous Page
Strategy Launches STRD: High-Yield 10% Preferred Stock for Long-Term Crypto Investors

Strategy Launches STRD: High-Yield 10% Preferred Stock for Long-Term Crypto Investors

Finance
By Jellan Arta

Strategy (MSTR) has unveiled its latest innovation in structured capital investment: the STRD Series A Preferred Stock. With a fixed 10.00% non-cumulative dividend and perpetual term, STRD targets yield-seeking investors looking for long-duration exposure with no management fees setting a new benchmark in crypto-backed equity instruments.

STRD: Highest Yield in Strategy's Preferred Lineup

STRD surpasses Strategy’s existing offerings with the highest yield among its preferred instruments. It outpaces STRK, which offers an 8% fixed dividend with convertibility, and STRF, which matches the 10% yield but carries higher seniority and lower volatility, akin to investment-grade debt securities.

Strategic Placement in Capital Stack

Positioned between the senior STRF and the convertible STRK, STRD plays a key role in Strategy’s expanding capital structure. While STRF offers superior seniority and security, STRD appeals to investors willing to trade seniority for the highest yield.

Zero Fees and Strong Market Comparisons

Compared to peer instruments like the iShares Preferred and Income Securities ETF (PFF, 7% yield, 0.46% fee) and iShares Broad USD High Yield Corporate Bond ETF (USHY, 8% yield, 0.08% fee), STRD offers a more attractive yield at 10%, with zero management fees and comparable volatility.

Investor Protections and Flexibility

STRD is non-callable under normal circumstances, but Strategy retains the right to repurchase in case of a fundamental change or specific tax conditions. Dividends are paid quarterly in cash, subject to board approval.

A Broader Vision for Crypto Capital Structure

The STRD launch supports Strategy’s long-term vision of a diversified capital stack blending stable yield products with high-conviction digital asset exposure. The firm continues to use its financial architecture to provide institutional investors with scalable crypto investment pathways.

This product reflects our ongoing commitment to innovation in capital structuring for the digital asset era.

James Van Straten

Van Straten is a Senior Analyst at CoinDesk, previously with Saidler & Co., and currently advising Coinsilium on Bitcoin strategy. He is also an investor in Strategy (MSTR).