Strategy's Four Perpetual Preferreds Carry Yields From 8% to ~12%, Backed by $2.25B Reserve

Strategy Inc., the Michael Saylor-led company formerly known as MicroStrategy, has built out a four-share perpetual preferred stack aimed at yield-seeking investors looking for indirect bitcoin exposure. The instruments rank senior to the common MSTR shares but are not directly collateralized by the company's bitcoin holdings.

The lineup, branded internally as "STRXs," consists of STRF, STRC, STRK and STRD. Per the company's disclosures, each carries a distinct dividend mechanism, payout cadence and seniority profile within the preferred-capital stack.

STRF, the Strife series, pays a fixed 10% quarterly dividend and sits at the top of the preferred liquidation queue. The filing said missed dividends accrue penalty rates of up to 18%, the steepest dividend-protection feature in the stack.

STRC, the Stretch series, is a floating-rate share targeting a stable $100 reference price, similar to a checking-account product. Its dividend ranges from roughly 9.5% to 11.5%, paid monthly with a proposed move to semi-monthly. Dividends are cumulative.

STRK, the Strike series, pays 8% quarterly and is convertible into MSTR common stock, giving holders an option to participate in bitcoin-linked equity upside. STRD, the Stride series, offers the highest headline yield at roughly 11% to 12% but ranks last among the four preferreds in liquidation and pays non-cumulative dividends.

According to company materials, Strategy carries a cash reserve of approximately $2.25 billion against annual preferred dividend obligations of about $887 million, covering roughly 19 months of commitments. The dividends are funded through corporate treasury operations, including issuance of preferred shares and debt under at-the-market programs, with proceeds also recycled into bitcoin purchases.

Saylor has signaled that, if needed, Strategy would sell bitcoin to meet dividend obligations once the holdings have appreciated. Critics, including Seeking Alpha analyst Rida Morwa, have likened the funding mechanism to "selling the furniture to pay the rent," arguing the yield depends on bitcoin price appreciation and a continuing MSTR equity premium.

The structure draws comparisons to closed-end funds and high-yield income funds that generate distribution rates through capital recycling rather than purely operating cash flow.

What it means: For income-focused investors, the STRX stack offers four distinct entry points into a bitcoin-linked yield product, with STRF positioned as the safest cash-flow play, STRK as the upside-linked option, STRD as the yield-maximizer, and STRC as a stable-price floating instrument best suited to operators comfortable with the underlying bitcoin-funding model.