Strategy's preferred equity placements are riding a bullish momentum

Strategy (MSTR) revealed a shift in its fundraising, as buyers moved onto its preferred equity placements. The ATM program for STRK, STRF, and STRD saw increased demand, rising to a record during the past week’s fundraising round. 

The Saylor-led firm noted a shift in its fundraising playbook, as it continues to build up its BTC treasury. After renewing its weekly purchases, Strategy noted that interest in its preferred shares increased. 

Last week’s market record demand for all three of the preferred stocks shows the firm’s shares are back in the spotlight, extending the BTC purchasing period. 

Strategy reported that preferred shares contributed $141M to last week’s raise, where the company acquired 4,225 BTC. 

Our preferred equity ATMs are seeing record demand. $141M raised last week. $STRK $STRF $STRD pic.twitter.com/QVWYbL2161

— Strategy (@Strategy) July 16, 2025

Strategy started to shift its capital raise to preferred shares in the past month. Last week was the first raise to include all types of preferred shares, as STRD offers were finally taken up by the market. 

Strategy pauses MSTR raises to improve balance

Strategy resorted to its preferred shares to slow down the dilution of its MSTR common stock. For the past two weekly raises, the Saylor-led firm did not issue new MSTR shares in its ATM program. Following a two-week pause of new MSTR issues, combined with a record BTC rally, MSTR rose to a yearly high at $442.13. 

The decision helped narrow the gap between the company’s share price and the value of its BTC holdings. When the share price gets too close to the underlying asset value, the ATM sales become less attractive. MSTR sales are successful when presenting a premium and serve as a proxy for BTC investments. 

As BTC posted records above $122,000 and held around $118,000, Strategy may be able to tap the MSTR ATM program in the coming weeks. As of July, Strategy has used up to 50% of its MSTR ATM program, with allocations intended to last until 2030. The firm has already acquired 3% of the BTC supply, hoping to hold for the long term.

Strategy preferred shares get a boost from yield demand

Strategy’s preferred shares offer the potential for dividend payouts, satisfying demand for high-yield products. Some of the preferred shares are riskier, but still inspire demand. The three types of preferred equity were issued in January, March, and June, helping Strategy in its record expansion in 2025.

STRF remains the least risky preferred stock, with a 10% yield and higher priority compared to STRK and STRD. STRF traded at $117, rising toward a record during the recent fundraise. Recently, STRF peaked at $126.48. 

STRK offers 8% yield, and is second in seniority in the case of redemption. STRK peaked at $125.75, later sliding to $118.13. 

The preferred shares have been trading above their $100 par since June, leading Strategy to expand its preferred share offers each week. One of the biggest sources of liquidity will be the $21B sale program for STRK. 

STRD is the latest addition to preferred shares, currently trading at $93.28. The new facility offers non-mandatory, non-cumulative dividends, though at a higher yield rate compared to STRF and STRK. 

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