Strategy (MSTR) has introduced trading of its third bitcoin-backed preferred stock, STRD, on Nasdaq. The new security, officially named the 10% Series A Perpetual Stride Preferred Stock (STRD), debuted with a slight gain of 0.24% on its first day of trading.
STRD offers investors a fixed 10% annual dividend, making it the highest-yielding product among Strategy's capital offerings, which also include STRF and STRK. However, unlike those prior issues, STRD is non-convertible and non-cumulative, meaning dividends will only be paid when declared by the company’s board and do not accumulate if skipped.
The company aims to raise nearly $1 billion by selling approximately 11.76 million STRD shares at $85 each, netting about $979.7 million after fees. The funds raised will be deployed for general corporate purposes and to further accumulate bitcoin holdings.
Investor enthusiasm appears healthy, exemplified by board member Jarrod Patten's insider purchase of 5,000 STRD shares. Patten already holds shares of MSTR common stock and STRF preferred security.
Strategy, formerly known as MicroStrategy, currently holds approximately 582,000 bitcoin valued near $41 billion and has a market capitalization exceeding $100 billion in 2025. The STRD launch aligns with Strategy's continued effort to blend bitcoin assets with traditional financial instruments, positioning these bitcoin-backed preferred stocks as hybrid fixed-income products secured by bitcoin reserves.
The company increased its capital raise goal from $250 million to nearly $1 billion prior to STRD’s launch, immediately using proceeds to acquire more bitcoin and strengthen its position as a leading corporate bitcoin holder. STRD offers investors exposure to bitcoin through a preferred equity structure targeting fixed income while retaining bitcoin's growth potential. This expands Strategy's innovative lineup of bitcoin-backed securities and further solidifies its vision of converting bitcoin exposure into investment-grade financial products.