MicroStrategy's perpetual preferred stocks will pay dividends, can STRK be used for BTC hedging?

Self-proclaimed as a BTC development company, the Strategy (, originally known as MicroStrategy), announced the first dividend distribution of its perpetual preferred stock STRK, at approximately $1.24 per share. The payment date is March 31, 2025, and the shareholder record date (ex-dividend date) is March 15, 2025. Calculated at the cost of yesterday's Closing Price $90.24, the (Effective Yield) is approximately 8.9%.

Strategy 永久優先股 STRK

MicroStrategy issued 7,300,000 shares of 8% perpetual preferred stock (perpetual preferred stock) STRK at a price of $80 per share at the end of January, which is 20% discount compared to its liquidation price of $100. MicroStrategy stated that the proceeds from this issuance will be used for general corporate purposes, including acquiring BTC. STRK features include:

Priority liquidation rights of $100 per share

In certain circumstances, it can be converted to Class A common stock ( at a conversion price of $1,000 )

Pay dividends every three, six, nine, and twelve months at the end of (

Under certain circumstances, MicroStrategy and holders may redeem shares.

No Voting Rights

The first dividend distribution is announced, with a cash dividend of 1.24 USD per share

Strategy announced that STRK will commence its first dividend distribution of approximately $1.24 per share. The payment date is March 31, 2025, with a shareholder record cutoff date of ) and a base date of March 15, 2025.

8% of quarterly dividends, averaging $2 per quarter, but the issuance date is at the end of January, and it is not yet a full quarter by the end of March, so the dividend is calculated proportionally, amounting to $1.24. And if calculated based on yesterday's Closing Price of $90.24, the effective yield is approximately 8.9%.

Hedging with STRK against BTC?

Strategy also updates the relevant information of STRK daily on its website. The correlation between STRK and its own stock MSTR is only 1%, -16% with Bitcoin, and as high as 27% with the US market. Does this mean STRK can be used to hedge against BTC?

From the trend chart of STRK at the top of the following figure, we can see that since STRK is first subscribed by institutional investors and then traded on the secondary market, its issuance price is $80, and the price on the secondary market has risen from $85 to ( to the index point ), and then fluctuated between $90 and $100.

On the other hand, SPY, BTC, and MSTR below have fallen by 3.49%, 12%, and 25% during this period. This shows the stability of STRK's bond-like nature. Its stable 8% dividend is even better than many bonds, but investors should note that dividends in the US stock market will be directly deducted 30% in taxes, so the actual dividend of 8% can only be 5.6%. However, it is still a good choice for conservative investors.

This article is personal opinion, please DYOR before investing.

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