Strategy Launches Series A Preferred Stock STRF on Nasdaq Today
Michael Saylor, founder of Strategy, announced the launch of "Series A Perpetual Strife Preferred Stock (STRF)" on Nasdaq. This stock aims to enhance visibility and liquidity.
Key details about STRF:
- Designed to raise capital for corporate purposes and Bitcoin acquisitions.
- Offers lower volatility compared to common stock (MSTR).
- No conversion rights; dividends compound at an initial rate of 10% annually, potentially increasing to 18% if payments are deferred.
- Dividends not guaranteed as the board can withhold them entirely.
- Offered at a liquidation price of $100 per share, backed by major financial institutions including Morgan Stanley and Citigroup.
Concerns among investors include:
- BTC yield may decrease if Bitcoin's price stagnates or declines, affecting STRF's appeal.
- The stock's structure raises doubts since it doesn't rely on operating revenue for dividends.
- A prolonged Bitcoin bear market could negatively impact MSTR's stock price and investor confidence in STRF.
- Strategy might need to issue new securities to cover dividend obligations, increasing dilution risk for current shareholders.
Recently, Strategy acquired an additional 6,911 BTC, raising its total holdings to 506,137 BTC, while facing ongoing losses in its core software business.