Michael Saylor Highlights Yield Gap Between STRF, STRD Preferred Stock Offerings

Why It Matters

The yield gap underscores investor preference for seniority even as the company leans on these instruments to fund its bitcoin strategy, making a default on STRD unlikely and potentially damaging to fundraising and market perception.

Summary

MicroStrategy Executive Chairman Michael Saylor flagged a widening credit spread between the company’s senior preferred stock STRF—trading above par at $109 with a 9.1% yield—and its junior preferred STRD, trading at $78 with a 12.7% yield, reflecting differing payout priority and risk. Saylor argued STRD is overlooked despite its higher yield, and said MicroStrategy will continue paying STRD dividends to protect its price and investor confidence because the securities are being used to raise capital for further bitcoin purchases. The yield gap underscores investor preference for seniority even as the company leans on these instruments to fund its bitcoin strategy, making a default on STRD unlikely and potentially damaging to fundraising and market perception.