Strategy (MSTR) has launched its third perpetual preferred instrument, the Series A Stride Preferred Stock (STRD), as it continues building out a structured yield curve for its capital stack.

With a 10.00% non-cumulative fixed dividend and perpetual duration, STRD aims to provide long-term, high-yield exposure positioned between the firm’s senior preferred (STRF) and convertible preferred (STRK) offerings.

Unlike STRF, which offers a senior claim and is designed to be overcollateralized with lower volatility—comparable to investment-grade securities STRD is junior in seniority but delivers the highest yield of Strategy’s preferred offerings.

STRK, by contrast, sits between the two in both risk and return, offering an 8% fixed dividend and convertibility. At the base of the capital stack lies MSTR, the firm’s common stock and primary vehicle for leveraged bitcoin exposure.

According to Strategy, STRD is non-callable under normal conditions, but may be repurchased upon a “fundamental change” or select tax events. Its quarterly dividends are discretionary and paid in cash only when declared by the board.

In the broader market, STRD compares favorably against other preferred equity and high-yield bond funds. With a 10% yield and zero management fees, STRD offers a compelling alternative to ETFs like PFF (7% yield, 0.46% fee) and USHY (8% yield, 0.08% fee), while maintaining comparable volatility levels.

The STRD offering supports Strategy’s broader initiative to offer diversified, structured exposures that span from stable yield to high-conviction digital asset plays anchoring a new approach to capital structuring in the digital era.