Investing in STRK, STRF, and STRD—MicroStrategy’s (now Strategy’s) preferred shares—offers compelling yields, but they come with distinct risks. Here's a breakdown of the key ones:
All three securities are tied to Strategy’s core business model: accumulating Bitcoin. This creates indirect crypto exposure even for preferred shareholders.
If Bitcoin prices plummet, Strategy’s balance sheet weakens, potentially affecting its ability to pay dividends.
In a severe downturn, the company might delay or suspend dividends, especially for non-cumulative issues like STRD.
⚠️ 1. Bitcoin Exposure Risk
🧾 2. Dividend Payment Risk
🧨 3. Capital Structure Subordination
📉 4. Liquidity & Market Volatility
🧮 5. Dilution & ATM Offerings
🧠 6. Optional Redemption Risk
🧩 7. No Voting Rights or Control