MicroStrategy STRF – 10.00% Series A Perpetual Strife Preferred Stock Analysis

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MicroStrategy STRF – 10.00% Series A Perpetual Strife Preferred Stock Analysis

Issuer: MicroStrategy Incorporated d/b/a Strategy
Ticker Symbol: STRF
Industry: Technology
Security Type: Perpetual Preferred Stock
Exchange: Nasdaq

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Offering Details

• Offering Size: 5,000,000 Shares
• Offering Price: $100.00 per share
• Total Proceeds (Expected): $500,000,000
• Offering Type: Perpetual Preferred Offering
• Distribution By: The Issuer
• Pricing Date: March 20, 2025 – 2:00 PM ET
• Indication of Interest Period: March 18 to March 20, 2025 – by 2:00 PM ET

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Key Features of STRF

• Dividend Yield: 10.00% annual cash dividend, paid quarterly
• Dividend Structure: Cumulative, with 1% annual increase on unpaid dividends (up to 18%)
• Convertibility: Non-convertible into common stock
• Redemption Terms: Non-callable; cannot be redeemed by the issuer
• Security Type: Perpetual; no maturity date
• Trading Info (as of May 24, 2025):
  • Last Price: $100.15
  • Intraday High: $101.00
  • Intraday Low: $98.23
  • Open Price: $99.38
  • Volume: 302,895 shares

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Strategic Context

• MicroStrategy continues to position itself at the intersection of technology and digital assets, aggressively utilizing proceeds to increase Bitcoin holdings.
• STRF’s high-yield design appears intended to attract fixed-income investors uninterested in equity conversion, offering long-term income potential with increased protection via cumulative dividend accrual.
• By making STRF non-callable, MicroStrategy effectively allows investors to lock in high-yield exposure to a high-beta company without the risk of early redemption.
• The increasing yield penalty for missed dividends (up to 18%) enhances investor protection during financial stress.
• Risk Profile: Investors should weigh MicroStrategy’s BTC exposure as part of their due diligence, given the asset’s volatility.

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Investor Considerations

• Ideal for income-focused investors seeking:
  • High fixed yield (10% baseline)
  • Inflation hedge via interest step-up
  • No dilution from conversion rights
  • Institutional-grade issuer in the technology space
• Not ideal for:
  • Investors seeking capital appreciation via common stock
  • Those concerned with MicroStrategy’s exposure to digital assets

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Conclusion

STRF offers an intriguing income-oriented opportunity from a well-known tech issuer leveraging blockchain exposure. While the yield and cumulative structure are highly favorable, the underlying risk tied to digital asset accumulation must be factored in. For risk-tolerant investors seeking fixed income in a high-tech package, STRF may offer value—especially in a rising rate or inflationary environment.

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Disclaimer: This is not financial advice. Do your own research before making investment decisions.