Profiles of STRK, STRF and STRD \ stacker news ~Stacker

These are notes I compiled using copilot for my own benefit and anyone who is interested in buying the above tickers...

Here’s a snapshot of the latest stock prices for the MicroStrategy-related securities as of the most recent market data:

Ticker	Name	Price (USD)	Change	Notes
MSTR	MicroStrategy Incorporated (Common Stock)	$402.97	+$6.03 (+1.52%)	Highly correlated with Bitcoin; no dividend
STRK	MicroStrategy 8.00% Series A Perpetual Strike Preferred Stock	$121.07	+$0.71 (+0.59%)	Pays 8% dividend; yield ~6.61%
STRF	MicroStrategy 10.00% Series A Perpetual Strife Preferred Stock	$120.25	+$2.53 (+2.15%)	Pays 10.56 annual dividend; yield ~9.32%
STRD	MicroStrategy 10.00% Series A Perpetual Stride Preferred Stock	$93.97	–$1.27 (–1.34%)	Newest preferred issue; no dividend declared yet

These preferred shares (STRK, STRF, STRD) are part of MicroStrategy’s capital-raising strategy to fund further Bitcoin acquisitions. Each offers different yield structures and risk profiles, with STRF currently offering the highest yield.

Would you like a breakdown of how these preferreds compare in terms of risk, convertibility, or tax treatment?

Great — here’s a breakdown of how STRK, STRF, and STRD compare across key dimensions like risk, convertibility, and tax treatment:

🧩 1. Convertibility

Ticker	Convertible?	Details
STRK	✅ Yes	Convertible into 0.1 shares of MSTR if MSTR trades at or above $1,000. Offers upside if common stock surges.
STRF	❌ No	Pure income play. No conversion feature; designed for yield-focused investors.
STRD	❌ No	Also non-convertible. Positioned as a high-yield, higher-risk instrument.

⚖️ 2. Risk Profile

Ticker	Risk Level	Notes
STRK	Moderate	Offers 8% dividend and equity upside via convertibility. More volatile than STRF.
STRF	Lower	10% fixed dividend, no convertibility. Less price fluctuation; appeals to conservative income investors.
STRD	Higher	10% dividend but subordinated to STRF. No dividend history yet; riskier due to newer issuance and lower market price.

💰 3. Tax Treatment

Dividends from STRK and STRF are generally qualified dividends, taxed at long-term capital gains rates (0–20%) if holding period requirements are met.
STRD has not yet declared dividends, but if/when paid, they would likely follow the same tax treatment as other preferreds.
Convertibility (STRK) may trigger capital gains if exercised, depending on timing and price differential.

⚠️ Always consult a tax advisor for personalized guidance, especially if you're considering reinvestment strategies or holding in tax-advantaged accounts.

Would you like a side-by-side recommendation based on your investment goals—like income stability vs. growth potential? Or a checklist to evaluate which fits best in your portfolio?

Investors might consider STRK, STRF, or STRD for different reasons depending on their goals—whether it's income, upside potential, or portfolio diversification. Here's a breakdown of the key benefits:

💸 1. Income Generation

STRK: Pays an 8% annual dividend, offering steady quarterly income. Ideal for those who want yield plus potential upside.
STRF: Offers a 10% fixed dividend, making it attractive for income-focused investors seeking higher cash flow with lower volatility.
STRD: Also promises a 10% dividend, but with higher risk due to its junior position and lack of dividend history so far.

These dividends are perpetual, meaning they continue indefinitely unless the company redeems the shares.

📈 2. Capital Appreciation Potential

STRK is convertible into MSTR common stock if it hits $1,000, giving investors a shot at equity upside during Bitcoin bull runs.
STRF and STRD are non-convertible, so they’re more about stable income than growth.

🛡️ 3. Risk Diversification

Preferred stocks like these sit between bonds and common stock in the capital structure:
- STRK is senior to common stock and offers some downside protection.
- STRF is junior but still ahead of common equity in liquidation.
- STRD is the most subordinated, so it carries more risk but compensates with a higher yield.

🧠 4. Strategic Exposure to Bitcoin

All three are issued by MicroStrategy (now branded as Strategy), which uses proceeds to buy Bitcoin. So:

MSTR = high-volatility Bitcoin proxy.
STRK/STRF/STRD = structured exposure to Bitcoin with income and reduced volatility.

🧾 5. Tax Efficiency

Dividends are generally qualified, meaning they may be taxed at lower long-term capital gains rates if holding period rules are met.

In short:

Choose STRK if you want income + upside.
Choose STRF if you want maximum income with lower risk.
Choose STRD if you’re comfortable with higher risk for higher yield.

Would you like a decision matrix or checklist to help match one of these to your investment profile?

Here’s a decision matrix to help you evaluate STRK, STRF, and STRD based on your investment priorities:

📊 MicroStrategy Preferred Shares Decision Matrix

Criteria	STRK	STRF	STRD
Dividend Yield	8%	10%	10% (not yet declared)
Dividend Stability	🟡 Moderate – Perpetual but not cumulative	🟢 High – Perpetual and cumulative	🔴 Low – New issue, no dividend history
Convertible?	✅ Yes – to MSTR at $1,000/share	❌ No	❌ No
Capital Upside Potential	🟢 Moderate – via MSTR price surge	🔴 Low – income only	🔴 Low – income only
Liquidity	🟡 Moderate – Thinly traded	🟢 Good – Higher volume	🔴 Low – Limited trading, wide bid/ask
Seniority	🟡 Mid-tier – above STRD, below STRF	🟢 Senior-most of the three	🔴 Junior-most
Risk Level	🟡 Medium – tied to BTC/macro sentiment	🟢 Lower – more income-focused	🔴 Higher – newer issue, less price support
Use Case Fit	Growth + Income hybrid	Income stability with less volatility	Opportunistic high-yield (for speculative buyers)

🧠 Quick Recommendation Based on Goals

Seeking income with moderate risk? → ✅ STRF
Want potential upside if Bitcoin soars? → ✅ STRK
Comfortable with volatility and want yield-maximizing edge? → 🟠 STRD (speculative)

Would you like help modeling expected returns under different Bitcoin scenarios? I could chart STRK's potential upside vs. MSTR, or compare all three in a scenario-based projection.

59 sats \ 3 replies \ @grayruby 13h

Nice recap.

There was an episode of What Bitcoin Did where the guest talked a lot about these products. Worth a listen.

https://fountain.fm/episode/KF9NJtIO22CIbliuqeAq

40 sats \ 2 replies \ @Bell_curve OP 13h

Generated using Co-pilot

But I had to had to ask the questions and copy/paste!

edit: I follow Jeff Walton on X and YouTube

his alias is punter Jeff because in college he played football, want to guess his position?

11 sats \ 1 reply \ @grayruby 13h

Long snapper? Haha

40 sats \ 0 replies \ @Bell_curve OP 8h

he said he was a punter in college but maybe he was the backup or redshirt

Long snapper is a very important position no one talks about, if he gets hurt, good luck on special teams

56 sats \ 2 replies \ @Wumbo 15h

Does one have to convert STRK if it hits the strike price of $1000?

Is it done automatically or does one have to submit a request?

61 sats \ 0 replies \ @Bell_curve OP 15h

If MSTR hits $1,000, you are not forced to convert. If you do not convert, you will keep collecting the 8% dividend.

55 sats \ 0 replies \ @Bell_curve OP 14h

Think of a preferred stock as an option, you have the option to convert or not, abort or not

11 sats \ 0 replies \ @BlokchainB 12h

I am a fan of STRK

11 sats \ 3 replies \ @bitcoingraffiti 12h

The retail investor should just buy $MSTR.

Those prefs and converts only work by the grace of Bitcoin going up more, i.e. making the common stock go up (and outperforming the derivatives).

Those prefs are mostly for institutions with a mandate, and you're gonna lose relative to $MSTR.

0 sats \ 2 replies \ @Bell_curve OP 8h

good warning

retail buyer beware

FYI: I bought all three as an experiment because I don't know what I'm doing or what I am talking about

0 sats \ 1 reply \ @bitcoingraffiti 8h

Ok, it's a good experiment. But prefs should underperform the common stock. (maybe not if bought under par) Otherwise Saylor's scheme wouldn't work, and there wouldn't be value creation, i.e. the bitcoin yield would be negative.

In his view the creditor is the sucker, and Bitcoin/common stock the superior asset.

0 sats \ 0 replies \ @Bell_curve OP 4h

The preferred stocks act like bonds and are targeted for bond investors.

Insurance companies can't buy bitcoin or ETFs but they can justify a dividend producing preferred stock

That's one example

11 sats \ 0 replies \ @flat24 13h

Ecxalous resource, yesterday watching a video where they explained on this subject. And it is fascinating to see how with these three options, the alternatives are covered so that bond investors go to it, regardless of the investor's profile, since with these financial instruments (STRK, STRF, STRD) it covers the needs of any investment profile.

11 sats \ 0 replies \ @bitcoingecko 14h

I'm happy these have been doing very recently. Hoping to see Saylor just do ATMs of these preferred and leave the common stock, MSTR, alone to grow.

0 sats \ 0 replies \ @Bell_curve OP 15h

Investing in STRK, STRF, and STRD—MicroStrategy’s (now Strategy’s) preferred shares—offers compelling yields, but they come with distinct risks. Here's a breakdown of the key ones:

⚠️ 1. Bitcoin Exposure Risk

All three securities are tied to Strategy’s core business model: accumulating Bitcoin. This creates indirect crypto exposure even for preferred shareholders.

If Bitcoin prices plummet, Strategy’s balance sheet weakens, potentially affecting its ability to pay dividends.
In a severe downturn, the company might delay or suspend dividends, especially for non-cumulative issues like STRD.

🧾 2. Dividend Payment Risk

Ticker	Dividend Type	Risk
STRK	Non-cumulative	Missed dividends are not owed later. If skipped, you lose that income.
STRF	Cumulative	Missed dividends accrue and must be paid before common stock dividends.
STRD	Non-cumulative	No dividend history yet; highest risk of non-payment.

STRD’s dividends are not guaranteed and may be deferred indefinitely without penalty to the company.

🧨 3. Capital Structure Subordination

STRK is senior to STRD but junior to STRF.
STRF has the highest priority among the three in liquidation scenarios.
STRD is the most junior, meaning it’s last in line if Strategy faces financial distress.

📉 4. Liquidity & Market Volatility

These preferreds are thinly traded, especially STRD, which can lead to:
- Wide bid-ask spreads
- Price swings unrelated to fundamentals
STRK’s price is also influenced by MSTR’s stock price, due to its convertibility feature.

🧮 5. Dilution & ATM Offerings

Strategy has launched at-the-market (ATM) programs to sell more STRD shares—up to $4.2 billion worth.
This can dilute existing holders, pressure prices, and increase the company’s dividend obligations.

🧠 6. Optional Redemption Risk

Strategy can redeem these shares under certain conditions, such as tax law changes or if fewer than 25% of the original issue remains.
Redemption may occur at par ($100), even if you bought at a premium—capping upside.

🧩 7. No Voting Rights or Control

Holders of STRK, STRF, and STRD have no say in corporate governance.
You’re relying entirely on management’s decisions—especially around Bitcoin strategy and capital allocation.

Would you like a visual risk ladder or a checklist to help decide which of these fits your risk tolerance best?