- Strategy launches $STRF, a perpetual preferred stock, to test investor preference for yield over conversion options.
- $STRK’s launch, while successful, faced initial size and price reductions, indicating market demand uncertainty.
- Experts emphasize that both $STRF and $STRK’s success depend heavily on favorable Bitcoin market conditions.
Strategy (formerly MicroStrategy) announces the launch of STRF, a new perpetual preferred stock offering with a 10% fixed dividend payable quarterly starting June 30, 2025. The firm claims that STRF will be a strong incentive for long-term holders, and the proceeds from this offering will be used for corporate purposes, including acquiring Bitcoin.
But why $STRF when there’s an existing $STRK?
Even though $STRK delivered decent returns, the initial offering size and price were significantly reduced, signs of uncertain demand. At the time, STRK was deemed as best-performing preferred stock with a record-breaking offer upsize. However, critics believe the “upsize” was a marketing gimmick and “this performance came at a cost.”
The initial plan for a $2.5B preferred stock raise was reduced to $250M. STRK also IPO’d at a reduced price of $80, a 20% discount below the par value of $100.

The more generous take is that as a brand-new offering, Strategy was testing the waters of market demand. After many trials and errors, the firm launched STRK at a price and target that they thought they could clear. On launch, the offer was upsized from $250 million to $584 million.
$STRF vs. $STRK: Testing Investor Preferences
Regarding $STRF, experts suggest that the stock lacks the conversion option that $STRK possesses. This is seen as a strategicic plan to gauge the market’s preference: Do investors want the conversion option, or would they just prefer straight yield? Such a kind of marketing tactic is called an A/B test to see what the market wants.
Experts, however, urge caution. The stock’s performance hinges on market conditions. Bitcoin bull markets and rate cuts typically provide a favourable ground to gauge the usefulness of these tools.
“All of MSTR’s fundraising tools work better in bitcoin bull markets, and STRK has yet to see a period of real bitcoin euphoria. So while STRK is just a base hit for now, it still has potential,” the author wrote.