STRK Preferred Stock Surges Beyond Bitcoin and S&P 500, Boosted by Strong ATM Issuance

Strategy’s (MSTR) perpetual preferred stock, STRK, has outperformed both bitcoin and the S&P 500 since its February launch, delivering an attractive yield alongside differentiated exposure to the crypto market.

According to a recent SEC filing and insights from the Twitter account DogCandles, STRK raised $59.7 million in its largest weekly at-the-market (ATM) issuance to date. The proceeds were promptly used to acquire more bitcoin, increasing Strategy’s BTC holdings. Approximately 621,555 STRK shares were issued, with the company still holding roughly $20.79 billion in remaining ATM capacity for STRK.

Under the leadership of Executive Chairman Michael Saylor, Strategy continues to execute its bitcoin accumulation strategy, with BTC currently trading above $100,000 and approaching its January record high near $109,000. After this latest purchase, the company’s total bitcoin holdings stand at 576,230 BTC.

A key metric, the BTC yield, currently measures at 16.3%, representing the year-to-date growth in bitcoin exposure on a per-share basis relative to diluted shares outstanding.

This recent STRK issuance accounts for nearly 9% of the total capital raised via the ATM program for Strategy’s common stock, which has amassed $705.7 million to date, signaling STRK’s increasing importance in the company’s capital structure and bitcoin buying efforts.

STRK offers a fixed 8% annual dividend on a $100 liquidation preference, resulting in an $8.00 payout per share annually. With an effective yield of approximately 8.1% based on the current STRK share price, investors benefit from steady income. The yield is inversely correlated to share price movements—when STRK shares rise, yield decreases, and vice versa.

Since its introduction on February 10, STRK shares have appreciated 16%, outperforming bitcoin’s 10% gain and the S&P 500’s 2% loss over the same timeframe.

Data from Strategy’s dashboard shows STRK has a relatively low correlation of 44% with MSTR common stock but maintains higher correlations of 71% and 72% with bitcoin and the SPY ETF, respectively. This unique correlation profile highlights STRK’s hybrid nature, offering investors a distinct way to gain bitcoin exposure with preferred stock features.

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