Strike (STRK), the preferred stock from Strategy, has risen 3% since its introduction on February 5. In contrast, Strategy’s common stock has dropped 20% over the same period. STRK, a hybrid of equity and debt, offers holders priority in dividend payments and asset claims in liquidation. As a perpetual issue, it has no maturity date and pays a fixed dividend, contributing to its lower volatility. STRK’s correlation with MSTR is 26%, and it has a -7% correlation with bitcoin. Its volatility stands at 49%, compared to bitcoin’s 60% and MSTR’s over 100%. Strategy recently announced a $21 billion at-the-market offering for STRK, which could lead to a $1.68 billion annual dividend bill if fully sold. STRK currently offers an 8% annual dividend yield based on its $100 liquidation preference, and at $87.45, an effective yield of around 9%. Additionally, STRK can convert into common stock at a 10-to-1 ratio if MSTR reaches $1,000 per share.
Ben Werkman
@BenWerkman
·
Jan 27 The dividends payable on the $STRK Preferred offering will be able to be paid in cash or in Class A common stock at the discretion of $MSTR which offers MSTR flexibility (Payment in Kind optionality).
Michaelww
@Michaelww
·
Mar 10 The creation of $STRK was a masterstroke, a highly attractive perpetual preferred stock with an 8% coupon backed by BTC. Will undoubtedly appeal
to many in these turbulent times. Sell as many as possible and vacuum BTC, add to balance sheet with minimal dilution Brilliant
Michaelww
@Michaelww
·
18m The creation of $STRK was a masterstroke, a highly attractive perpetual preferred stock with an 8% coupon backed by BTC. Will undoubtedly appeal
to many in these turbulent times.
@saylor
Sell as many as possible and vacuum BTC, add to balance sheet with minimal dilution Brilliant
Marco ₿attistoni
@Battistoshi93
·
Mar 11 After latest $STRK $21B Plan by Strategy this clip from the guys is gold. Portion of the next STRK dividend will be provided already in-house by converting CB above 0% IR and free up CF!
For Jeff Park STRK is the best instrument in Strategy toolkit..
$BTC x $MSTR
Mark Harvey
@thepowerfulHRV
·
22h Math: (8%) × ($21B) = $1.7B annually.
How can Strategy afford to pay $1.7B in dividends to $STRK shareholders?
THE BITCOIN PHARAOH
@thebtcpharaoh
·
1m If they are confident in the sustainability (and potential growth) of their cash flows then in principle it’s a great tool to use as they would be able to easily pay the dividend in exchange for front loading BTC purchases and accelerating BTC yield.
At the moment I’m struggling
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