Strategy, the bitcoin-focused company behind MSTR stock, has launched several types of preferred shares to raise more funds for buying bitcoin. These new stocks—STRF, STRK, and STRD—give investors steady income and potentially less risk than regular shares or Bitcoin itself.
According to analysts at TD Cowen, these preferred shares are attractive because they offer fixed dividends. For example:
- Strife (STRF) offers a 10% fixed cumulative dividend but can’t be converted into regular shares.
- Strike (STRK) gives an 8% fixed dividend and can be converted into regular shares.
- Stride (STRD) offers a 10% non-cumulative dividend and is also non-convertible.
TD Cowen has now rated all of them a “buy”, with price targets of $126 (STRF), $140 (STRK), and $112 (STRD). They already had a $590 price target for MSTR. These preferred stock offerings are part of Strategy’s larger plan, known as the “42/42” plan, to raise $84 billion by 2027 to purchase additional bitcoin.
TD Cowen states that Strategy has sufficient surplus value, approximately $53.8 billion, to cover preferred share dividends for 174 years, based on an annual dividend burden of $351 million. That means these shares are likely safe for investors looking for steady income.
Strategy currently holds nearly 600,000 BTC, worth around $64 billion. Analysts expect it to own over 850,000 BTC by the end of 2027, which is more than 4% of bitcoin’s total supply. Despite trading at a 63% premium to its net asset value, TD Cowen believes that’s reasonable.
He said so because every time Strategy sells shares, it uses that money to buy even more Bitcoin, increasing the value per share. At the time of reporting, Strategy’s stock (MSTR) was trading at $401.29, up around 28% on the day and 33% for the year, bringing its market cap to $110 billion.
Also Read: Bitcoin Price Prediction as MSTR Stock Touches New High!
