Robinhood Expands Trading with STRC, STRK, and STRF Launch
Robinhood has introduced trading for Strategy Inc.'s preferred equities: STRC, STRK, and STRF.
Preferred equities are hybrid securities paying fixed dividends, ranking above common stock but lacking voting rights.
This marks Robinhood's first venture into preferred stocks, previously focusing on common equities, ETFs, and options.
STRC: Launched with a $2.5 billion IPO and a $4.2 billion at-the-market sale. It aims to maintain its price near $100 through variable monthly dividends, serving as a bitcoin-backed money market alternative.
STRK: Offers an 8% fixed dividend and a feature to convert to common stock if the share price reaches $1,000.
STRF: Provides a 10% fixed dividend, escalating up to 18% if payments are missed, backed by a $2.1 billion issuance program.
The expansion reflects Robinhood's strategy to meet the growing demand for higher-yield securities linked to digital asset-backed structures.
