Strategy: Still Sticking With Series A Preferreds
Summary
- Strategy now holds over 600,000 BTC, but MSTR still trades at a significant premium to its Bitcoin holdings.
- I continue to like the STRF preferred shares far better than the common. STRF has an 8.4% effective yield and has outperformed MSTR since my last article.
- STRF is less risky than MSTR in both bull and bear Bitcoin scenarios, as dividends are realized returns and not dependent on BTC price appreciation.
- With potential rate cuts ahead, STRF may gain favor with income investors. I see it as the best way to gain exposure to Strategy at this time.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of STRF, BTC-USD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I'm not an investment advisor.
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