MicroStrategy Preferred Shares Offer 11.5% Yield While Common Amplifies Bitcoin Moves
MicroStrategy holds 762,099 BTC at an average cost of $75,694 per coin, backing both its common shares and perpetual preferred Stretch stock with a treasury valued at roughly $51 billion. The perpetual preferred pays an adjustable 11.5% monthly dividend to maintain par value, while common shares amplify Bitcoin’s price swings 1.5×–3×.
1. Bitcoin Treasury and Coverage
MicroStrategy holds 762,099 BTC at an average cost of $75,694 per coin, giving its treasury a valuation near $51 billion. This single Bitcoin stack collateralizes both the common stock and the perpetual preferred Stretch shares.
2. Common Shares Leverage and Performance
The common shares amplify Bitcoin’s price moves by issuing additional equity and debt to purchase more BTC, delivering 1.5×–3× outperformance during bull runs but magnifying losses in downturns. With debt obligations senior to equity and ongoing dilution, holders face heightened downside risk and no dividend cushion.
3. STRC Preferred Dividend Mechanics
The perpetual preferred stock launched at a 9% dividend rate in July 2025, climbing through seven monthly increases to an 11.5% yield. Its dividend adjusts by at least 50 basis points if the 30-day VWAP falls below $95 or can be cut if the price exceeds $101, stripping out Bitcoin volatility for predictable income.
4. Investor Base and Market Implications
Roughly 80% of STRC holders are retail investors, compared with 40% for common shares, highlighting divergent risk appetites. The market is effectively sorting itself as investors choose between leveraged upside or steady dividend income.