MicroStrategy Incorporated 8.00% Series A Perpetual Strike Preferred Stock (STRK)

We take a look at the action in preferreds and baby bonds through the third week of June and highlight some of the key themes we are watching. Preferreds delivered solid performance in April, with credit spreads tightening but yields rising due to higher Treasury rates. Strategy (formerly MicroStrategy) issued a 10% non-cumulative preferred; main risks are BTC price volatility and asset coverage mechanics, not cash flow.» Mehr auf seekingalpha.com

I seeded my son's UTMA account with STRK, Strategy's convertible preferred stock, for its blend of yield, downside protection, and equity-like upside. STRK offers a high-yield income stream, the potential for capital appreciation, and a lower downside risk profile than MSTR, making it a compelling option for a portfolio. Some risks include Bitcoin volatility, capital structure changes, and possible dividend deferral, but STRK sits higher in the capital stack than Strategy's common equity and STRD.» Mehr auf seekingalpha.com

Strategy's fixed-income securities offer investors an income-based way to gain exposure to Bitcoin. STRK and STRF have substantially different clauses that align them with different types of investors. Both preferreds are currently swapping hands at small premiums to their $100 per share liquidation value. STRK's convertible feature exposes its holders to more MSTR volatility versus STRF.» Mehr auf seekingalpha.com