The Bitcoin Treasuries Podcast with Tim Kotzman The STRF, STRK Strategy of MSTR with Dan Hillery
Mar 21, 2025
Dan Hillery returns to discuss MicroStrategy's exciting financial innovations! He breaks down the STRF and STRK preferred shares, emphasizing their benefits for investors, including a solid 10% annualized dividend yield. Hillery explains the unique compounding dividend structures and the implications for risk management. Plus, he dives into advancements in Bitcoin custody, showcasing how multiple institutions enhance security. It's a treasure trove of insights for both veterans and newcomers in the crypto space!
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MicroStrategy's Preferred Shares
- MicroStrategy's new preferred shares, STRK and STRF, offer a unique investment opportunity.
- These shares provide exposure to Bitcoin while potentially reducing selling pressure on the Class A shares.
STRF: Fixed-Income Preferred Share
- STRF is a fixed-income preferred share with a 10% annualized dividend yield.
- It offers senior status in the capital structure, prioritizing STRF shareholders in case of liquidation.
STRF Compounding Dividend
- STRF includes a covenant for a compounding dividend, increasing the annualized rate by 1% for each unpaid quarter.
- This incentivizes MicroStrategy to prioritize dividend payments to STRF holders.