STRK

Strategy’s 8.00% Series A Perpetual Strike Preferred Stock, a convertible preferred equity offering perpetual dividends and Bitcoin-linked upside.

What is STRK?

STRK is Strategy’s (formerly MicroStrategy) 8.00% Series A Perpetual Strike Preferred Stock, a convertible preferred equity instrument designed to raise capital for Bitcoin acquisitions while providing investors with yield and potential equity conversion. Issued in March 2025 as part of a $21 billion at-the-market program, it offers an 8% perpetual dividend payable in cash or common shares, with a conversion option into MSTR common stock at a $1,000 strike price. As of July 2025, approximately $818 million in notional value was outstanding, with dividends accumulating quarterly and restrictions on share payments if MSTR falls below 35% of its January 2025 price of $347.92.

The security embeds a call option component, contributing about 34% of its value, making it sensitive to MSTR volatility and Bitcoin price movements due to Strategy’s treasury focus. STRK ranks below convertible notes but above common equity in the capital stack, with a BTC Rating of 5.3x and implied credit spread of 700 bps as of May 2025, offering less volatility than MSTR but asymmetric downside risk from volatility declines.

Investors favor STRK for its 7% effective yield at trading prices around $114, combining fixed income with Bitcoin exposure, though it faces risks from dividend suspensions or Bitcoin drawdowns impacting Strategy’s financing ability.