Get ready for Strife (STRF), Strategy’s new preferred stock, to start trading on Nasdaq! Michael Saylor, the company’s executive chairman, announced that this new stock will offer investors yield in either USD or BTC, for both STRF and existing MSTR shareholders.

Michael Saylor has officially announced the launch of trading for Strife’s yield-generating preferred shares. This much-anticipated STRF stock is set to debut on Nasdaq starting March 26th. Saylor shared the news directly via X (formerly Twitter).

Our new preferred stock STRF (“Strife”) creates USD Yield for $STRF investors—and BTC Yield for $MSTR investors. It begins trading today on Nasdaq.

— Michael Saylor⚡️ (@saylor) March 26, 2025

This announcement comes hot on the heels of Strategy’s latest Bitcoin purchase, boosting their treasury to over half a million coins! STRF represents the newest addition to the company’s financial toolkit, marked by a fresh issuance of 500,000 shares this March.

Following Strategy’s increased activity in the crypto space, MSTR shares have once again solidified their position as a popular proxy for Bitcoin’s performance. Anticipation for STRF’s price discovery sent MSTR stock soaring to a one-month high of $341.81.

Early indications suggest STRF will trade around $85 per share, hinting at a substantial 11.6% annualized yield. This impressive yield could give Strategy further fuel to acquire even more Bitcoin, potentially driving the market price upwards.

STRF: Designed to Act as a Bond

This new STRF preferred stock is structured to behave like a high-yield bond, with the core objective of channeling significant capital into Bitcoin acquisitions. It functions as a debt instrument, offering dividends rather than traditional bond interest. The introduction of Strife firmly aligns with Strategy’s overarching mission to aggressively accumulate Bitcoin, regardless of market price.

The issuance of Strife is designed to be perpetual, remaining active until Strategy decides to discontinue it. Strategy retains the flexibility to retire STRF at its face value of $100, or to continue distributing the agreed-upon dividend. STRF is strategically positioned to attract investors seeking steady income streams, including large institutions that might find MSTR’s volatility less appealing.

Strategy intends to fund these attractive dividend payouts through revenue generated from its core software operations, with their substantial Bitcoin holdings acting as an ultimate safety net.

STRF will carry a face value of $100, establishing the minimum claim in the event of company liquidation. Unlike STRK, which has convertibility to common stock, STRF will not be convertible. And similar to STRK, these new preferred shares will not grant voting rights to holders.

To date, Strategy’s financial instruments portfolio includes general debt, STRK Perpetual Strike Series A, MSTR common stock, and now the preferred Series A shares, STRF. Should liquidation occur, the company’s asset distribution hierarchy prioritizes debt holders first, followed by STRF, then STRK, and finally MSTR common stockholders.

Strategy’s strategy of issuing assets and making Bitcoin acquisitions is effectively aimed at attracting bond market investors and channeling more capital into BTC. Saylor’s unwavering conviction in Bitcoin is clear – he’s publicly stated that their accumulated Bitcoin treasury is intended to be held indefinitely, and never sold.

Strategy continues to reign as the largest corporate Bitcoin holder, firmly committed to a long-term strategy. Currently, their Bitcoin wallets remain undisclosed to the public. However, blockchain intelligence platform Arkham has identified an entity strongly suspected to be Strategy’s primary Bitcoin wallet. Company reports indicate their holdings now exceed 506,137 BTC. A portion of their Bitcoin may also be secured through Fidelity Custody. Strategy maintains a passive holding strategy for all their Bitcoin, with no indication of utilizing these assets for yield generation or other operational activities.

These recent stock issuances, combined with the prior STRK issuance at an 8% yield, have triggered some concerns regarding the company’s long-term debt servicing capabilities. The STRK convertible share program is designed to potentially raise up to $21 billion over time, contingent on favorable market conditions.

The STRF issuance necessitates an even more attractive yield promise, amidst some uncertainty about the overall demand for fundraising. Strategy’s model also depends on investors choosing to largely keep their capital within the company’s ecosystem, viewing it as a stand-in for direct Bitcoin exposure.

Bitcoin’s price often responds to Strategy’s activities, particularly during periods of significant purchasing. Following their recent acquisition, Bitcoin’s price rebounded to $87,785.38.

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Source: cryptopolitan.com