STRF

Strategy’s 10.00% Series A Perpetual Strife Preferred Stock, a non-convertible preferred equity providing high fixed dividends without equity upside.

What is STRF?

STRF is Strategy’s (formerly MicroStrategy) 10.00% Series A Perpetual Strife Preferred Stock, a non-convertible preferred equity issued to fund Bitcoin purchases, offering a fixed 10% annual cash dividend on a $100 stated amount. Launched in March 2025 with an initial $850 million offering and expanded via a $2.1 billion at-the-market program, it pays quarterly dividends and ranks senior to STRK and common equity in liquidation but lacks conversion features. As of May 2025, $711 million was outstanding, trading at $94.30 for an effective yield of 10.6%.

Unlike convertible options like STRK, STRF provides pure income exposure, with penalties for missed payments including a 100 bps coupon increase per miss, up to 18%, and board election rights after four consecutive misses. It exhibits 50% correlation to MSTR and 55% to Bitcoin, with a BTC Rating of 5.8x and credit spread of 675 bps, making it vulnerable to Bitcoin declines widening spreads without upside participation.

STRF appeals to income-focused investors in Strategy’s capital stack, but carries risks from limited cash flow generation since 2021, potentially leading to suspensions and value erosion in downturns.