Preferred Stock
Equity securities with priority over common stock for dividends and assets, used in Strategy’s stack for Bitcoin funding.
What is Preferred Stock?
Preferred stock is a class of ownership providing fixed dividends and asset priority in liquidation, without voting rights, often perpetual or convertible. In digital asset contexts, companies like Strategy issue it to raise non-dilutive capital for Bitcoin treasuries, offering yields above bonds. Strategy’s offerings include STRK (8%), STRF (10%), and STRD (10%), totaling $1.668 billion outstanding as of May 2025.
It ranks above common equity but below debt, with cumulative dividends and penalties for misses, appealing for income with less volatility than MSTR.
Related Terms
Lending Pool
A smart contract aggregating digital assets from suppliers for lending and borrowing.
CLOB (Central Limit Order Book)
A trading mechanism that matches buy and sell orders for assets based on price-time priority, commonly used in both traditional and decentralized exchanges.
BTC Yield
Strategy's key performance indicator measuring the percentage increase in Bitcoin holdings per diluted common share over a period.
Supervisory Capital Assessment Program (SCAP)
A one-time 2009 Federal Reserve stress test of the 19 largest U.S. bank holding companies to determine capital needs amid the financial crisis.
Blockchain Trilemma
The blockchain trilemma refers to the challenge of balancing three core properties—decentralization, security, and scalability—in a blockchain network, where optimizing one often compromises the others.
Circle
The company behind USDC, focused on building transparent and compliant digital asset solutions.