STRF
Perpetual Strife Preferred Stock
At this price
The entry price above $100 reduces indicated yield below the 10% contractual rate. Higher liquidation priority and cumulative rights are the trade-off against lower-ranked alternatives; neither the stated amount nor priority guarantees an exit value.
Assessment and scenario use October 30 prices. A later price-only update does not silently refresh this assessment. Indicated yield annualizes the snapshot ordinary rate; it is not promised income or total return.
One-year scenario at the October 30 entry price
Not a forecast: assumes distributions are realized in cash-equivalent value, no reinvestment, fees or taxes. STRK cash settlement is not assured; variable rates may change.
Entry $101.42. At the assumed $10 distributions, price-only decline to $91.42 would offset that income before costs. Omitted or deferred payments change the result.
Filed daily-dividend changes: effective dates matter
Strategy filed the amended certificates on October 29. STRC’s daily schedule becomes effective November 1 at 12:01 a.m. Eastern; STRF, STRK and STRD changes become effective January 1, 2027. As of this October 31 review, the existing schedules still apply. Weekend and holiday entitlements may be grouped; daily accrual does not promise a separate cash receipt every calendar day.
The November daily STRC dividend schedule replaces the alternative November 15 semi-monthly dividend when the effective-date condition is met. Those alternatives must not be added together.
oct29_amendments: October29 Form8-K Items3.03 and8.01; filed amended certificates and effective dates · oct16: Primary filing
STRF price history
Why consider it?
Highest named Strategy preferred liquidation tier; still behind creditors.
Main trade-off
Dividends depend on issuer funding; priority does not protect the market price or guarantee recovery.
Income terms
Quarterly; filed daily change effective January 1, 2027. Cumulative.
Cash, when declared and legally available.
No scheduled maturity. Preferred equity is not a secured loan or direct ownership of the issuer’s digital assets. Priority does not guarantee payment or recovery.
What supports the dividends?
At October 25, Strategy reported a $4.83bn USD Reserve and a separate $242.4m USD Cash balance. The reserve is intended for preferred dividends and debt interest; it is not pledged collateral. October 19–25 repurchases used $204.9m of USD Cash to buy 2,068,459 STRC shares: fewer dividend-bearing shares, but less cash.
In the six months ended June 30, operating cash flow was $9.850m versus $629.175m of cash preferred dividends: 1.57%. This matching-period historical comparison includes reserve interest and is not a forecast of the next payment. Funding depends substantially on reserves, financing and possible asset sales.
September results, debt and preferred obligations
The October 29 unaudited results report September 30 cash and equivalents of $2.501456bn and separate short-term investments of $3.404457bn: $5.905913bn combined, excluding $1.671m restricted cash. These are balance-sheet assets, not operating cash flow, and must not be added to October 25 liquidity as if they were separate pools.
September 30 net debt carrying value totals $6.715414bn ($1.045669bn current plus $5.669745bn noncurrent). Carrying value is not face principal or a put/maturity schedule. Preferred dividends shown in the income statement are $419.556m for the quarter and $1.049744bn for nine months; those are not cash-flow-statement cash-paid amounts.
June 30 outstanding principal—not new October balances—supports $1.010bn of possible holder puts in 2027 and $4.903659bn in calendar 2028. The latter is $2.000bn + $1.500bn + $0.800bn + $0.603659bn, before interest and subsequent changes.
Rounded issuer notionals retrieved October 28 imply approximately $1.475bn of ordinary annual preferred dividends, including STRE translated to dollars. This is an approximate illustration, not certified current share counts or a cash forecast. Rates, repurchases, issuance, FX, interest and arrears matter; STRK may use shares. No precise runway is inferred. The new September results contain no consolidated cash-flow statement, and no September 30 Form 10-Q was found in the October 31 index review. June 30 remains the latest verified cash-flow period; the 1.57% comparison is not Q3 or current operating coverage.
oct26: Primary filing · q2: Primary filing · q3_results: October29 results exhibit: unaudited September30 balance sheet and operating results; no cash-flow statement
Detailed terms, arrears and exit rights
Unpaid dividends
Unpaid dividends compound at an annual rate starting at 11%, increasing one percentage point each subsequent period, capped at 18%. This applies to unpaid dividends, not the $100 stated amount.
Exit limits
No holder conversion; no scheduled maturity. Defined cleanup/tax calls and fundamental-change rights have contractual conditions; no general $100 cash-out right.
Liquidation preference is a contractual calculation, not a guaranteed $100 recovery or market floor.
Sources, dates and limits
Primary-source review updated October 31; financial periods and effective dates remain separately stated. This is investment research, not a financial-statement audit. Declarations and scheduled payment dates are not proof of brokerage receipt. Distribution tax treatment depends on issuer reporting and investor circumstances; return of capital is not a blanket tax-free promise.