Overview

Strategy (MSTR) has started trading its third “bitcoin-backed” preferred stock, STRD, on the Nasdaq, with its shares officially debuting on Wednesday. The new financial instrument, known as the 10% Series A Perpetual Stride Preferred Stock (STRD), concluded its first day with a slight increase of 0.24%.

Key Points:

• Board member Jarrod Patten acquired 5,000 STRD shares, supplementing his existing 28,000 MSTR Class A shares and 10,000 STRF shares.
• STRD guarantees a fixed 10% annual dividend without management fees, making it the highest yield option in Strategy’s preferred stock offerings, albeit with greater risk due to its non-cumulative payout structure.

STRD is designed to attract investors looking for strong yields without management fees, despite the risk of dividends being paid only when declared and not accruing if missed. Strategy intends to raise approximately $1 billion through the issuance of 11.76 million shares at a price of $85 each, forecasting net proceeds around $979.7 million after expenses. The collected funds will be directed towards general corporate purposes and additional Bitcoin accumulation.

Investor interest remains robust, especially from within the company. Jarrod Patten also disclosed the purchase of 5,000 STRD shares, adding to his portfolio of MSTR and STRF shares.

For further developments, read more here.