Strategy’s STRD credit spread tightens as weekly ATM issuance hits record high
Strategy's STRD preferred stock credit spread tightened due to strong demand, coinciding with record weekly at-the-market issuance.Summary
Strategy's junior preferred stock, Stride (STRD), experienced a tightening credit spread against the 10-year U.S. Treasury, hitting a low of 8.12% on December 12, suggesting increased investor demand and improved perception of the company's credit quality, despite broader struggles in the Bitcoin market.
This positive movement follows Strategy bolstering its preferred securities' credit profile by establishing a $1.44 billion reserve covering over 21 months of dividends. Furthermore, the yield gap between STRD and the more senior STRF offering remains significant, with STRD offering a roughly 320 basis point premium, which Strategy executives previously attributed to capital-stack positioning rather than fundamental differences.
This demand is underscored by record issuance; Strategy raised $82.2 million from selling approximately 1 million STRD shares via its at-the-market program in the week ending December 14, marking the largest single-week proceeds for any of the company's preferred stock offerings since March.
(Source：CoinDesk)