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STRF, Strategy's 10% preferred, posts record volume in the secondary market

·Bloomberg·1 min read
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The fixed-income instrument issued by Strategy tops $500M of daily volume for the first time, cementing itself as the debt instrument with the greatest indirect Bitcoin exposure on the market.

STRF, Strategy's perpetual preferred with a fixed 10% annual dividend paid quarterly, has posted a record $512M of volume in a single session, cementing itself as one of the most traded Bitcoin-related fixed-income instruments in the world.

Institutional interest in STRF has grown steadily since issuance. Fixed-income managers value it as an alternative that combines predictable cash flow with indirect exposure to Bitcoin's appreciation through Strategy's balance sheet.

Unlike buying MSTR directly, STRF offers priority in payment over common shareholders and a fixed dividend, which makes it more attractive to investors with fixed-income mandates or conservative profiles who cannot hold high-growth equities in their portfolio.

STRF's price in the secondary market has stayed close to its $1,000 face value, implying that the market does not price in a significant short-term default risk from Strategy.

Some analysts, however, flag call risk: Strategy can redeem STRF from May 2027, which could happen if interest rates fall and the company can refinance more cheaply.

Original source:Bloomberg
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