Hold the phone, folks! Strategy’s STRK preferred stock is absolutely killing it. Since its launch on February 10th, 2025, this thing has surged a whopping 16%, leaving Bitcoin (up a measly 10%) and the S&P 500 (down 2% – ouch!) in the dust. Seriously, take note!
Strategy isn’t just sitting on its hands either. They’re aggressively buying Bitcoin with the funds raised through their weekly on-chain issuance plan. Last week alone they raked in a record $59.7 million! That’s some serious firepower.
Currently, Strategy boasts a Bitcoin hoard of 576,230 coins, generating a solid annualized yield of 16.3%. And get this: STRK’s current yield is 8.1% with a low correlation to Strategy’s common stock. That’s diversification, baby!
Let’s dive a little deeper into why this is a big deal.
Preferred stock, unlike common stock, typically pays a fixed dividend and has priority in the event of bankruptcy. It sits higher in the capital stack.
Convertible preferred stock, like STRK, adds another layer – the ability to convert into common stock under specific conditions. This can offer potential upside if the company performs well.
These instruments are fairly uncommon in the crypto space, making Strategy’s move a potentially game-changing one. They’re essentially offering a way to earn yield on Bitcoin, rather than just holding it.
This isn’t just a win for Strategy; it’s a potential turning point for how we think about investing in crypto. Is this a sign of things to come? I, for one, am watching closely. This could be huge, or it could be a lesson in hype. Only time will tell… but right now, STRK is the one to watch.
