Bitcoin and High-Yield Crypto Investments: Strategy Launches STRD Preferred Shares

In a significant move to expand its capital stack, Strategy (MSTR) has launched its Series A Stride Preferred Stock (STRD), a perpetual preferred instrument offering a 10.00% non-cumulative fixed dividend. This marks the firm’s third such offering, positioned between its senior preferred (STRF) and convertible preferred (STRK) shares. The STRD is designed to attract long-term investors seeking high-yield exposure, despite being junior in seniority, it boasts the highest yield among Stride’s offerings. Meanwhile, Bitcoin continues to show strength, trading at 105,287.28 USDT as of June 3, 2025. This development underscores the growing intersection of traditional finance and cryptocurrency, as firms like Strategy innovate to provide diversified investment opportunities in the digital asset space.

Strategy Launches High-Yield STRD Preferred Shares to Expand Capital Stack

Strategy (MSTR) has introduced its Series A Stride Preferred Stock (STRD), marking its third perpetual preferred instrument. The offering features a 10.00% non-cumulative fixed dividend and perpetual duration, positioning it between the firm’s senior preferred (STRF) and convertible preferred (STRK) offerings. STRD targets long-term, high-yield exposure, junior in seniority but delivering the highest yield among Strategy’s preferred instruments.

Unlike STRF, which is designed to be overcollateralized with lower volatility, STRD offers a risk-return profile that appeals to yield-seeking investors. STRK, meanwhile, provides an 8% fixed dividend with convertibility features. At the base of Strategy’s capital stack lies MSTR common stock, the primary vehicle for Leveraged Bitcoin exposure.

STRD is non-callable under normal conditions but may be repurchased during fundamental changes or tax events. Dividends are discretionary, paid quarterly in cash when declared by the board. The instrument compares favorably against preferred equity and high-yield bond ETFs, offering a 10% yield with zero management fees—outpacing alternatives like PFF and USHY.

MicroStrategy’s Bitcoin Treasury Set for $15.8B Q2 Windfall, Eyes S&P 500 Inclusion

MicroStrategy, now rebranded as Strategy, is poised to recognize a staggering $15.8 billion unrealized gain on its bitcoin holdings this quarter under new accounting rules. The fair-value adjustment under ASU 2023-08 will flow directly through net income, transforming what would have been a 2024 net loss into what may be the largest quarterly profit ever recorded by a business-intelligence firm.

The gain stems from Bitcoin’s rally from $82,445 at Q1’s close to approximately $111,000, though current prices near $105,000 suggest a slightly lower final figure. With 580,955 BTC now worth over $60 billion, the crypto position dwarfs the company’s $111.1 million Q1 software revenue.

This accounting windfall clears a critical path for potential S&P 500 inclusion later this year, as the gains bolster shareholder equity. The firm continues accumulating BTC, adding 705 coins in late May at an average cost of $75 million.

Tether Allocates $1.1B in Bitcoin to Back SoftBank’s Investment in Twenty One Capital

Tether Group has allocated 10,500 BTC, worth approximately $1.1 billion at current market prices, to facilitate SoftBank’s investment in Bitcoin-focused firm Twenty One Capital (XXI). CEO Paolo Ardoino confirmed the transaction via a Mempool block explorer post, disclosing the recipient address and its balance as of June 3.

The stablecoin issuer subsequently moved an additional 917.47 BTC to a separate address linked to XXI’s pre-funding round. This secondary allocation serves as a conversion option for investors. Bitcoin’s price showed minimal volatility following the announcement, trading at $105,241 with a 0.2% 24-hour dip.

SEC’s Hester Peirce Pushes for In-Kind Redemptions for Bitcoin ETFs

SEC Commissioner Hester Peirce has signaled openness to in-kind redemptions for Bitcoin ETFs, a MOVE that could reshape crypto investment mechanics. The shift from cash to physical Bitcoin redemptions promises operational efficiency and tax advantages for investors.

Peirce’s pro-crypto stance shines through her advocacy for investor-centric product design. "How can you let people design products in a way that’s most helpful for investors?" she posed during a Coinage Media interview, framing the debate as a matter of market innovation rather than regulatory constraint.

The current cash redemption model forces ETF issuers to liquidate Bitcoin holdings, creating unnecessary market friction. In-kind alternatives WOULD allow direct Bitcoin-for-shares exchanges, preserving assets while reducing taxable events. Crypto markets responded positively to Peirce’s remarks, seeing them as validation of Bitcoin’s growing institutional legitimacy.

Jacobi Bitcoin ETF Opens Doors to European Retail Investors

Jacobi Asset Management has dismantled entry barriers for its Bitcoin ETF, marking a pivotal shift for European retail investors. Previously restricted to professionals, the fund now welcomes broader participation following regulatory approval in Guernsey.

Launched in 2023 on Euronext Amsterdam, the ETF was built to institutional standards—featuring Zodia Custody’s secure storage solutions. The expansion reflects bitcoin’s growing acceptance among governments and institutions globally.

"We designed this fund with institutional-grade safeguards from inception," a Jacobi spokesperson noted. "Now we’re aligning with market evolution by democratizing access." The move enables investment through regulated platforms, contingent on local jurisdiction rules.