How to choose MicroStrategy's 4 preferred stocks to create a stable cash flow with Bitcoin?

The pioneer of Bitcoin reserve strategy, MicroStrategy, originally named MicroStrategy (, has issued four preferred stocks in just half a year. Not only does it offer an annualized dividend of over 8%, but the stock price has also performed impressively. This allows investors who dislike the high Fluctuation of Bitcoin to buy into Bitcoin concept stocks and create a stable cash flow.

What are the differences between STRD, STRF, STRK, and STRC?

MicroStrategy has issued four different types of preferred stock to date, and Chain News has compiled the differences as shown in the table below:

STRK STRF STRD STRC Annual Dividend Rate 8% 10% 10% Fluctuating Rate, initially 9% Dividend Frequency

Seasonal dividend

Quarterly dividend Quarterly dividend Monthly dividend Can the dividend be accumulated Not accumulable Accumulable Not accumulable Accumulable Can it be converted to common stock MSTR Yes No No No Priority repayment order (1 highest) 3 1 3 2

The earliest issued STRK has the characteristic of being convertible into common stock MSTR, with a conversion price of $1,000 and a dividend of 8%.

STRF enjoys a 10% annual dividend, paid quarterly. If the current dividend cannot be paid, the unpaid portion will accumulate as "compounded dividends" ), and the annual interest rate will increase by 100 basis points ( or 1%( each quarter, with a maximum annual interest rate of 18%.

STRD also has a 10% annual dividend, but the dividend is non-cumulative, meaning the company can decide not to distribute dividends, and there will be no subsequent issuance. Additionally, STRD has a lower repayment priority and its terms are clearly inferior to those of the original STRF.

The newly issued STRC claims to distribute dividends monthly, adopting a floating interest rate, with the first dividend rate set at 9%.

How are STRD, STRF, and STRK performing?

Strategy issued STRK ) at the end of January, with the yellow line in the chart below ( having an issuance price of 80 USD, which has now risen to 118.2 USD, achieving a six-month fluctuation of 48%.

The STRF ) issued in March has a green line in the chart below. The issuance price was 85 USD, and it has now risen to 119.1 USD, an increase of up to 40%.

The STRD ( issued in early June, as shown by the orange line in the chart below, was issued at a price of 85 USD and has now risen to 93.2 USD, representing a fluctuation of 10%.

STRC is still in the fundraising stage, but it will maintain the price of STRC in the range of 99 to 101 dollars by adjusting the distribution rate and the issuance price of the ATM, so it is expected that there will not be significant price fluctuations.

Which investment should investors choose to create stable cash flow?

Taiwanese investors most favor investing in individual stocks with cash flow that have "high dividend yields". Generally, stocks with a yield of over 5% are considered decent targets. The four preferred stocks from MicroStrategy adopt quarterly/monthly dividend payouts, with the dividend calculated based on a par value of 100, yielding rates of 8% to 10%. However, a 30% withholding tax imposed by the U.S. government must be deducted, so the actual annual interest that investors can receive is approximately 5.6% to 7%, which is actually much better than average individual stocks.

If measured purely by volatility, STRC has the lowest volatility and pays dividends monthly. MicroStrategy will also adjust the dividend rate and the ATM issuance price to keep the price of STRC within the range of 99 to 101 USD. This allows investors to exit at any time without having to consider the fluctuations in asset prices. However, the dividend rate may be adjusted monthly due to the reduction of the US benchmark interest rate.

Investors who enjoy fluctuation and want to earn dividends while also profiting from price differences may consider three other preferred stocks.

This article discusses how to create stable cash flow through Bitcoin, and how to choose the 4 preferred stocks of MicroStrategy? It first appeared on Chain News ABMedia.