In a bold move to strengthen its position in both the fixed-income and crypto markets, Strategy (formerly MicroStrategy) has announced the launch of its new Series A Perpetual Stride Preferred Stock, branded as “STRD.” The company plans to offer 2.5 million shares, each with a $100 initial liquidation preference and a 10% annual dividend, as it continues to double down on its Bitcoin acquisition strategy.
What Is STRD and Why Does It Matter?
The STRD stock is designed to attract investors seeking steady income, offering a 10% non-cumulative cash dividend—meaning if a dividend is missed in any quarter, it won’t be paid later. Dividends are only distributed if declared by Strategy’s board, with payments scheduled quarterly starting September 2025.
Proceeds from the STRD offering will be used for general corporate purposes, including further Bitcoin purchases and working capital. This aligns with Strategy’s ongoing focus on digital assets, as the company recently acquired an additional 705 BTC, bringing its total holdings to 580,955 BTC—making it the largest corporate Bitcoin holder globally.
How Does STRD Compare to Previous Offerings?
STRD follows the earlier launch of the “Strife” (STRF) preferred stock, which also offers a 10% dividend but is considered investment grade and overcollateralized by Bitcoin. In contrast, STRD is seen as a higher-yield, higher-risk option, ranking junior to STRF in liquidation and featuring non-cumulative dividends.
| Feature | STRD (Stride) | STRF (Strife) |
| Dividend Rate | 10% (non-cumulative) | 10% (investment grade) |
| Collateralization | Not overcollateralized | Overcollateralized by BTC |
| Liquidation Rank | Junior to STRF | Senior to STRD |
| Redemption Terms | Callable under certain events | No maturity date |
| Risk Profile | Higher (junk grade) | Lower (investment grade) |
Key Terms and Investor Protections
• Liquidation Preference: The value resets daily to the highest of $100, the prior-day closing price, or the ten-day average closing price, helping protect investors if the stock trades above par.
• Redemption: Strategy can redeem all STRD shares for cash if the total outstanding falls below 25% of the aggregate sold, or in certain tax or merger events, at the prevailing liquidation preference plus any declared but unpaid dividends.
• Seniority: STRD ranks above common stock but below debt and STRF in the event of liquidation.
• No Maturity Date: The shares can remain outstanding indefinitely, providing flexibility for both the company and investors.
Who’s Behind the Offering?
Major financial institutions including Barclays, Morgan Stanley, Moelis & Company, and TD Securities are managing the offering, with several co-managers supporting the process. This institutional backing adds credibility and visibility to the new stock .
Why Is Strategy Doing This?
Strategy’s move is part of a broader effort to raise capital for ongoing Bitcoin accumulation and to diversify its funding sources. The company’s aggressive Bitcoin strategy has drawn both attention and scrutiny, but it remains committed to its vision of integrating digital assets into its corporate treasury.
“Saylor is coming for the entire fixed-income market,” commented Dylan LeClair, head of Bitcoin strategy at Metaplanet, highlighting the company’s ambition to bridge traditional finance and crypto.
What’s Next?
Final pricing and listing details for STRD will depend on regulatory review and market conditions. Once settled, STRD will trade separately from Strategy’s common stock and other tracking stocks, offering investors a new way to gain exposure to both fixed-income returns and the company’s Bitcoin-driven growth.
