STRD: A 10% Preferred Stock IPO From MicroStrategy

  • Perpetual Stride Preferred Stock offers a high 10% yield but is non-cumulative, junior in capital structure, and carries substantial investment risk due to MicroStrategy Incorporated's negative earnings. MicroStrategy's negative earnings and reliance on Bitcoin sales to fund dividends heighten the risk of STRD's dividend not being declared. STRD trades at a higher yield than senior preferreds, reflecting market concerns about payment reliability.