Strategy, formerly MicroStrategy, the company led by Michael Saylor, has defined itself as a digital asset treasury firm, where it raises funds through capital markets and increases its Bitcoin reserves.
Strategy currently has a Bitcoin reserve of 843,738 BTC (approximately 3.7% of the total Bitcoin supply). This makes Strategy the biggest corporate Bitcoin holder and gives investors indirect exposure to BTC through its listed securities.
In 2025, the company introduced several preferred shares of the common stock, such as STRD, STRK, STRC, STRF and STRE, while MSTR is still the common. Every product comes with specific dividend terms, risk-return characteristics and seniority.
Raising cash is Strategy's key model, which it uses to buy Bitcoin. The easiest way is to sell MSTR shares when the price of the stock rises above the value of the Bitcoin that they own.
The mNAV, or multiple of net asset value, is a common way of measuring this premium. The higher the mNAV, the more the company's equity is valued relative to its BTC assets.
In such scenarios, new share offerings may push the BTC price per share instead of bringing it down. This is known as ‘accretive dilution.
Preferred shares sit between common stock and corporate debt. They get dividends and come before the common shareholders in payout rank. But preferred shareholders usually have fewer voting rights and upside potential than common shareholders.
The products of Strategy's preferred stocks are listed in order of priority. STRF is senior preferred, STRE is senior preferred, STRC is middle and STRD is junior. MSTR common stock is in the last place of the distribution.
MSTR is Strategy's common stock listed on the Nasdaq and is the most direct way to get leveraged exposure to Strategy's Bitcoin strategy. It does not pay dividends and is at the bottom of the capital structure.
The first issue of the least senior preferred stock is STRD, or Stride, which debuted in June 2025. It pays a dividend of 10% per year on a par value of $100 at the rate of $10 per share per quarter.
STRD dividends are not cumulative, however. This means that if Strategy misses out on a dividend payment, then investors don't get that missed payment at a later time.
Also Read: Bitcoin Price Falls Below $74,000 After Massive ETF Outflows
Strike (STRK) launched in January 2025. It pays an 8% annual dividend on a $100 par value, with quarterly payments. STRK is convertible, while STRD is not, meaning that the stockholders of STRK can exchange their stock for MSTR common stock at a ratio of 10 to 1.
This provides STRK investors with income in the form of dividends and the possibility of a gain if MSTR increases sufficiently to make the conversion worthwhile. Missed STRK dividends are cumulative, which means they are still owed to investors.
STRC is also known as Stretch and was launched in July 2025. The dividend for this fluctuates and is paid monthly. The dividend rate changes by 0.25% each month to keep the stock price in a band around the desired price point of $100.
If STRC is below $100, then the dividend rate may be increased to make the stock more appealing to buyers. The rate could drop if it trades at over $100. The current rate is over 10%. STRC dividends are cumulative, as is STRK.
Strife, also known as STRF, is one of Strategy's highest-ranking preferred shares. It pays a 10% annual dividend on a $100 par value and is senior to STRD, STRK and STRC. The rate could increase to 18% as a penalty if dividends are not paid, and the dividend holders could even have voting rights.
The Euro-denominated version of STRF is traded on the Luxembourg Stock Exchange and is called STRE. It has a par value of €100 and a 10% dividend, but there is said to have been limited uptake.
The most important of the senior credit notes are, above all, the preferred shares of Strategy. They are corporate debt instruments with interest rates ranging from 0% to 2.25%. They are normally first in the payout sequence and can be converted to MSTR when specific price criteria are fulfilled.
1. What is Strategy’s main business model?
Strategy raises capital through common stock, preferred shares, and credit notes, then uses that cash to buy Bitcoin. Its goal is to keep increasing BTC holdings while offering investors different ways to gain Bitcoin-linked exposure.
2. What is MSTR stock?
MSTR is Strategy’s Nasdaq-listed common stock and the most direct way to gain leveraged exposure to the company’s Bitcoin treasury strategy. It does not pay dividends and sits at the bottom of the payout structure.
3. What is STRK?
STRK, also called Strike, is a convertible preferred share launched in January 2025. It pays an 8% annual dividend and can be converted into MSTR shares at a 10:1 exchange ratio if conversion becomes attractive.
4. What is STRC?
STRC, known as Stretch, is a preferred share with a variable monthly dividend designed to keep its price near $100. If STRC trades below $100, the dividend rate may rise to attract buyers.
5. What is the biggest risk in Strategy’s preferred shares?
The main risk is whether Strategy can continue funding its dividend obligations through capital market activity. If demand weakens or mNAV falls, the company may need to use reserves, delay dividends or adjust product terms.