STRD is a new preferred stock offering a 10% yield, with no convertibility or cumulative dividends, and subordinated in Strategy’s hierarchy of securities.
It targets investors seeking high passive income, with volatility comparable to ETFs, but without the management fees of listed products.
STRD fits into an overall financial segmentation strategy, positioned between stability (STRF) and maximum leverage via MSTR, to create an in-house yield curve.
STRD: record yield, subordinated status
With a fixed yield of 10%, STRD surpasses Strategy’s other preferred stocks: STRK, convertible at 8%, and STRF, also at 10%, but with higher priority in case of repayment. STRD is non-convertible, non-cumulative, and does not benefit from the protections of STRF. It therefore ranks last in restructuring but tops the chart in terms of yield.
Dividends, paid quarterly in cash, are only due if declared by the board of directors. The stock is not redeemable at Strategy’s initiative, except in the case of a “fundamental change” or specific tax events, making it a truly perpetual instrument in its structure.
A robust alternative to traditional products
With this issuance, Strategy clearly targets investors looking for long-term exposure to high yield, without the recurring fees of listed products. STRD offers a higher yield than benchmark ETFs like PFF (7% yield, 0.46% fee) or USHY (8%, 0.08% fee), while displaying comparable volatility.
STRD is part of a strategic vision: building an in-house “yield curve,” ranging from stable exposures like STRF to high-leverage bets on Bitcoin via ordinary shares of MSTR. Within this framework, STRD serves as a high-yield intermediary without convertibility, ideal for profiles seeking passive income in an innovative capital structure.
A new step in Strategy’s financial architecture
By launching STRD, Strategy not only offers an additional product: it strengthens its custom financial engineering logic. The company now offers three clear layers: senior stability (STRF), medium flexibility (STRK), and high yield through STRD. All revolving around MSTR, the main vehicle for Bitcoin exposure, which remains at the core of the Strategy ecosystem.
This new product marks another step towards financial structuring tailored for the digital age, where investors can build their own risk-return profile within one company.
