Latest news with #STRF
Yahoo
12-06-2025
- Business
- Yahoo
Strategy Launches STRD, Its Third 'Bitcoin-Backed' Preferred Stock on Nasdaq
Strategy (MSTR) has officially launched trading of its third "bitcoin-backed preferred stock", STRD, on the Nasdaq, with shares making their debut on Wednesday. The new security, formally named the 10% Series A Perpetual Stride Preferred Stock (STRD), closed the day slightly higher, gaining 0.24%. STRD offers a fixed 10% annual dividend, making it the highest-yielding instrument among Strategy's capital offerings, which also include STRF and STRK. Unlike those, STRD is non-convertible and non-cumulative, meaning dividends are paid only when declared by the board and do not accrue if missed. Despite this added risk, the product is positioned to attract long-term investors seeking strong yield with no management fees. Strategy aims to raise nearly $1 billion through the offering by selling 11.76 million shares at $85 each. Net proceeds are expected to total around $979.7 million after fees and expenses. According to the company, the funds will be used for general corporate purposes, and further accumulation of bitcoin. Investor interest appears strong, including from inside the company. Board member Jarrod Patten disclosed the purchase of 5,000 STRD shares. Patten already holds 28,000 shares of MSTR Class A common stock and 10,000 shares of STRF, another preferred security issued by the in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
Strategy Shifts Capital Raise to Preferred Stocks as Common Share Issuance Loses Allure
Over the past two weeks, Strategy (MSTR) has refrained from utilizing the at-the-market (ATM) equity program on its common shares to fund bitcoin BTC purchases, choosing instead to use the programs on its two perpetual preferred stocks. The choice most likely reflects the narrowing premium between the company's share price and its multiple net asset value (mNAV) or, more colloquially, the difference between its market cap and the value of its bitcoin holdings, and allows Strategy to raise funds to buy more BTC without diluting shareholders' stakes in the company. When the share price trades close to the underlying bitcoin asset value, issuing common shares via ATM becomes less attractive. Such offerings are typically only advantageous when executed at a meaningful premium. Strategy funded its most recent 1,045 BTC purchase using proceeds from its two perpetual preferred stock ATMs: 59.18% from the STRK offering and 40.82% from the STRF one. These preferred stocks have demonstrated strong lifetime returns of 35% for STRK and 24% for STRF. This gives the company greater flexibility to continue accumulating bitcoin while preserving upside for common stock investors. There's also an additional dynamic at play, according to analyst Jeff Walton. The effective dividend yields of STRK and STRF have steadily declined from about 10% even though the yield on the benchmark U.S. 10-year Treasury has remained relatively constant at 4.5%. That's because the dividend yield falls as the price of the stock increases, a bond-like behavior that makes the preferred shares more attractive in a stable rate environment. Strategy is likely to reengage the ATM on its common stock if the share price rises significantly, particularly if it exceeds twice the mNAV, which would allow room for dilutive issuance at a premium. While the common stock ATM remains the primary mechanism to fund dividend obligations on the preferred shares, Strategy retains the option to use the preferred stock ATMs for this purpose as well, depending on market conditions.
Yahoo
06-06-2025
- Business
- Yahoo
Strategy to Raise Nearly $1B With STRD Preferred Stock Offering to Accumulate BTC
Strategy (MSTR), the largest corporate holder of bitcoin BTC, has priced the new preferred stock offering designed to give long-term investors a fixed 10% annual return with no management fees. The firm will sell 11.76 million shares of its 10% Series A Perpetual Stride Preferred Stock (STRD), expecting to bring in an estimated $979.7 million after fees and expenses, according to a press release. The shares, which sit below Strategy's other preferred offerings STRF and STRK, are set to settle on June 10. Unlike STRF, which has senior status and lower volatility, and STRK, which is convertible and pays 8%, STRD offers the highest yield among Strategy's capital products while being riskier. It comes with a non-cumulative dividend, meaning missed payments won't accrue, and dividends will only be paid when declared by the board. STRD is designed to appeal to investors seeking high-yield options. The shares are non-callable under normal conditions, with redemption clauses kicking in only under certain tax events or structural shifts in the company, the release reads. Strategy says the proceeds of the offering are going to be used for general corporate purposes, which include the acquisition of additional bitcoin. The firm's shares are up 1.7% in pre-market trading at $ in to access your portfolio
Yahoo
02-06-2025
- Business
- Yahoo
Michael Saylor's Strategy bets on Bitcoin amid global tension
Michael Saylor's Strategy bets on Bitcoin amid global tension originally appeared on TheStreet. Michael Saylor's Strategy (Nasdaq: MSTR), formerly MicroStrategy, bought 705 Bitcoin worth approximately $75 million between May 26 and June 1, as per the company's 8-K filing with the Securities and Exchange Commission (SEC) on June 2. This is a significant development amid the ongoing global tension emerging out of the war in Europe. Strategy is the world's largest public corporate holder of Bitcoin. The business intelligence firm that began adding Bitcoin to its account book in 2020 now holds 580,955 BTC worth more than $60 billion at the time of writing. While Strategy made the latest Bitcoin acquisition at the average purchase price of $106,495 per BTC, its overall BTC purchase comes down to $40.68 billion at the average purchase price of $70,023. It used the proceeds from the sale of its preferred stock offerings, the 10% Series A Perpetual Strife Preferred Stock (STRF) and the 8% Series A Perpetual Strike Preferred Stock (STRK), to make the Bitcoin purchase last week. While the STRF stock was trading at $106 in pre-market hours, up 2.33% a day, STRK was trading at 103.50, up 0.333% a day. The MSTR stock, on the other hand, was trading at $367.77 in pre-market hours, down 0.30% a day. Saylor, the firm's co-founder and executive chairman, is a well-known Bitcoin advocate who has predicted that Bitcoin will hit the price of $13 million within 20 years. Saylor is very enthusiastic about the future of the world's largest cryptocurrency, which he believes will be driven by institutional adoption by governments and corporations. He recently told CNBC: Everywhere I go — Hong Kong, Korea, Abu Dhabi, Brazil, Kenya — people are building Bitcoin treasury companies. As per Kraken's price feed, the king coin was exchanging hands at $104,288.99 at press time, up 8.5% a month. Michael Saylor's Strategy bets on Bitcoin amid global tension first appeared on TheStreet on Jun 2, 2025 This story was originally reported by TheStreet on Jun 2, 2025, where it first appeared. Sign in to access your portfolio
Globe and Mail
02-06-2025
- Business
- Globe and Mail
Strategy Stock (MSTR) Still a ‘Compelling Vehicle' for Bitcoin Exposure, Says Top Analyst
Strategy (MSTR), the largest corporate owner of Bitcoin in the world, climbed 0.73% on Monday and is up nearly 30% year-to-date, fueled by its expanding Bitcoin holdings and creative capital-raising efforts. Yesterday, TD Cowen's Top analyst Lance Vitanza reiterated a Buy rating on the stock, describing the company as a 'compelling vehicle for Bitcoin investors.' Confident Investing Starts Here: The five-star analyst highlighted Strategy's latest move, the debut of its first-ever Series F Redeemable Preferred Stock At-The-Market (STRF ATM) program, as a key catalyst for long-term value creation. With a price target of $590 and upside potential of 58%, the analyst believes that Strategy remains a smart long-term bet on Bitcoin. New STRF Offering Aims to Boost Shareholder Value Vitanza explained that the STRF ATM program was used to raise $2.1 billion, giving it strong backing to grow its Bitcoin portfolio without major dilution. Compared to the company's earlier funding plans, including its common stock ATM and Series K Preferred Stock ATM, the new tool is designed to be more shareholder-friendly and accretive. Last week, Strategy bought 4,020 Bitcoins for $427 million, using cash mostly from these offerings. Vitanza believes that using the STRF setup for such deals can lead to better use of funds and stronger returns for investors. BTC Torque Points to 8x Value Gain TD Cowen also updated its proprietary Bitcoin Torque (BTC Torque) model, a metric that calculates the value created for shareholders relative to the capital invested. After including share dilution and fees, the firm estimates a torque ratio of 8.0x over 10 years, implying that every $100 million raised through STRF could generate $800 million in shareholder value. Is MSTR Stock a Buy Right Now? According to TipRanks, MSTR stock has a consensus Strong Buy rating among 13 Wall Street analysts. That rating is based on 12 Buys and one Sell assigned in the past three months. The average MSTR price target of $524.92 implies a 41.03% upside from current levels. See more MSTR analyst ratings Disclaimer & Disclosure Report an Issue
