TD Cowen: The Launch of Strategy’s STRD Will Bring Significant Value to MSTR Shareholders

According to Jinse Finance, corporate Bitcoin treasury firm Strategy (stock code: MSTR) recently purchased approximately 10,000 bitcoins for $1 billion, bringing its total holdings close to the 600,000 BTC mark. The company’s recent acquisition was primarily funded by the initial public offering (IPO) of its $1 billion Stride perpetual preferred stock (STRD). TD Cowen analysts noted that this process “establishes a channel for future high-yield capital inflows into Bitcoin.” In addition, at-the-market sales of STRK and STRF have also provided the company with extra capital. Following its latest purchase last week, Strategy now holds a total of 592,100 BTC. In a report released Tuesday, TD Cowen analysts wrote: “Therefore, we expect [STRD]’s dividend yield to be higher than the company’s other preferred shares.” The value of the Bitcoin held by Strategy stands at $63 billion, while the total debt plus outstanding preferred shares amounts to $11.6 billion, leading analysts to “consider these subordinated securities to be very safe.”