Strategy (MSTR) Executive Chairman Michael Saylor Highlights Yield Gap Between Preferred Stock Offerings

MicroStrategy Executive Chairman Michael Saylor highlighted a substantial yield gap between the company's two preferred stock offerings: STRF (senior) and STRD (junior). STRF, being a senior security, is prioritized for payouts, carries lower risk, trades above par at $109, and offers an effective yield of 9.1%. Conversely, STRD is a junior, non-cumulative security trading below par at $78, which compensates investors for higher risk with a higher effective yield of 12.7%, similar to a junk bond. Saylor questioned why investors favor the lower-yielding STRF, noting the over 350 basis point spread. He dismissed concerns about MSTR failing to pay the junior STRD dividend, arguing that maintaining payments is crucial to protect the stock price, especially since the capital raised from these securities is intended for further Bitcoin purchases. Separately, Saylor confirmed MSTR recently acquired more Bitcoin, bringing its total holdings to 640,250 BTC, even as MSTR stock lagged Bitcoin's performance year-to-date.

(Source：CoinDesk)