Understanding strategies prefers stocks. If the company faces problems, who will be compensated first?

On July 21, 2025, the strategy provided yet another permanent preferred stock. It is called stretching. It was introduced within two months of the onset of a permanent stride of another strategy. The other two perpetuals are in conflict with strikes released in January and March, respectively. It is important to understand how different these stocks are and what those differences are with the MSTR, the common stock of the strategy.

Strategic Preferred Stocks

Stretch, Stride, Strike, and Fighting are preferred stocks launched to encourage long-term Bitcoin acquisition of strategies. The company has ambitious plans to raise $84 billion over two years. Darebett aims to impress potential investors and attract more capital. The company aims to create additional burdens as dividends should be paid to the holders of preferred stock.

Preferred stocks generally do not grant holders the right to vote or restrict them. Preferred shares give holders a share of the company and the right to make money from the company’s capital. These shares are reminiscent of bonds as they acquire dividends on the shares held by the owner. More than that, in the event of bankruptcy of the Company, the holder of the preferred shares will be paid in advance of the common shareholders. However, the bondholder has top priorities in such circumstances.

Some investors took interest and filled their new assets, while others viewed it as “stretch.” Critics believe strategy sharing is dangerous. The company must maintain dividend payments accurately and in a timely manner. The more stock a company offers to raise funds, the more dividends they have to pay. It increases pressure on the balance sheet, which is firmly dependent on the price of Bitcoin.

stretch

Initially, the strategy provided $500 million worth of stretching (STRC) on July 21, 2025. The company provided approximately 28 million shares. The timing of the stretch launch will be confirmed indirectly, as in July 29th. The strategy purchased 21,021 BTC, spending a whopping $2.46 billion.

New Series A Stretch Perpetual Stock offers an adjustable 9% annual dividend payment. Dividends are paid once a month. The dividends on the remaining preferred stock are paid quarterly, making STRC unique. The company aims to adjust the stock price and keep the stock price at around $100. Other features include market issuance (the strategy can always sell more STRs and dilute assets) and call options features.

stride

Stride (STRD) was offered on June 3rd. Unlike stretches, Stride is a permanent stock that is incomplete. There is a 10% annual dividend paid once a quarter. Like STRC and STRK, Stride has an ATM program, and the strategy can always sell more STRD stocks.

Like with stretches these days, the emergence of the Stride was ambiguously filled as critics warned about the possibility that critics would have to sell strategies to pay dividends to shareholders. Some claimed that STRD had “Ponzi Vibes.” Funds raised through MSTR sales can be used to pay dividends to holders of preferred stock.

read more: The strategy was introduced for a new and permanent state called Stride (STRD). Some call it a genius, others say it has a “ponzi atmosphere.”

strike

Strike (STRK) was the perpetual first priority of a strategy that pays dividends of 8% per year. The offering took place in early January 2025, when it offered 2.5 million shares. Strike stocks can be converted. Investors can convert to MSTR, the common stock of the strategy, at a 10:1 ratio whenever they want.

Fighting

In March 2025, the Strategy began selling 8.5 million contested stocks (STRFs). STRF pays grant holders a quarterly annual dividend of 10% shares. Dividend payments could rise, reaching up to 18%. Because Strife does not have an ATM program, the strategy cannot release more STRF stocks to the market.

MSTR Common Stock

MSTR common stocks appeared long before MicroStrategy’s Bitcoin Pivot, and even before the creation of Bitcoin itself. The company sold 36 million MSTRs in 1998. MSTR shareholders are part owners of the strategy.

Vanguard Group Inc., Capital International Investors and BlackRock Inc. are the largest holders of MSTR common stock. They hold 5-7.8% of the MSTR.

Who will be compensated first?

If your strategy faces economic challenges and you have to sell your Bitcoin reserves, the first person to get the payment will be the bondholder of the strategy. The payment then hits the pocket of the preferred shareholder. The seniority of these stocks determines the priorities between them. The first ones are stretch holders, stretch holders, strike holders, and ultimately stride holders. The last row is the MSTR holder. While MSTR may have the greatest correlation with BTC prices, owners have more risk than preferred stock holders.

Although the strategy uses sophisticated systems to protect assets, it is always important to prepare for the possibility of turbulence in advance, as soon as Bitcoin’s Treasury begins to go bankrupt, it can cause panic that will harm the well-being of strategic investors.

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