Everything on this page is built on BTC. The numbers are current as of October 14, 2026, and the mechanics haven't changed. What's changed is the premise underneath them. I used to assume BTC goes up forever as the super digital asset. It will probably keep going up, but I no longer believe it carries the properties of freedom money, and those properties are moving to XBT. So temper your enthusiasm for anything built on BTC, size it to your own risk profile, and read where I stand before you decide.
Bond Pricing 101
The most important thing to understand about preferred stocks: price and yield move in opposite directions. Here's the simple math — and an interactive calculator so you can see it in real time.
The Inverse Relationship
Preferred stocks — and bonds — work like this: the dividend payment is fixed. What moves is the price. And price and yield always move in opposite directions.
Yield = Annual Dividend ÷ Price
Or flipped around: Price = Annual Dividend ÷ Yield
📈 Price Goes Up → Yield Goes Down
STRD pays $10/year. If it trades at $100, the yield is 10%. If everyone loves STRD and buys it up to $200, the yield drops to 5% ($10 ÷ $200). Same payment. Lower percentage return on what you paid.
📉 Price Goes Down → Yield Goes Up
If STRD drops to $50, the yield jumps to 20% ($10 ÷ $50). The company still pays $10. But you paid $50 for it, so your percentage return doubled. Higher yield = lower price, always.
This is why STRD currently shows a yield around 14%: it's trading at a discount to its theoretical "fair value." The question is: fair value at what comparable interest rate? That's where it gets interesting.
The Yield Table — Price at Different Yields
Here's what each product would be worth at different market yield levels. This tells you a lot about where prices might go as the market evolves.
| Market Yield | STRF Price ($10 ÷ yield) |
STRK Price ($8 ÷ yield) |
STRD Price ($10 ÷ yield) |
What This Implies |
|---|---|---|---|---|
| 4% | $250.00 | $200.00 | $250.00 | Investment grade / Treasury equivalent |
| 6% | $166.67 | $133.33 | $166.67 | High-grade corporate bond territory |
| 8% | $125.00 | $100.00 | $125.00 | Investment grade preferred range |
| ~9.9% | $101.00 ← | 📍 STRF current market price | ||
| 10% | $100.00 | $80.00 | $100.00 | Par value / current STRC territory |
| ~10.1% | $79.00 ← | 📍 STRK current market price | ||
| ~13.2% | $76.00 ← | 📍 STRD current market price | ||
| 15% | $66.67 | $53.33 | $66.67 | High-yield / junk bond territory |
| 20% | $50.00 | $40.00 | $50.00 | Distressed / speculative |
The thesis: as Bitcoin matures as an asset class and Strategy's credit becomes better understood, the market will price these preferred stocks at lower yields (like investment-grade preferreds from blue-chip companies). If STRD compresses from 15% to 8% yield, the price more than doubles from $67 to $125. You'd collect dividends and see capital appreciation.
Interactive Yield Calculator
Move the slider to see what each preferred stock would be worth at different market yield levels.
Prices at market close October 14, 2026: STRD $71.64 (≈14.0% yield) · STRF $103.34 (≈9.7%) · STRK $73.62 (≈10.9%)
The slider shows you the price each product should trade at if the market demanded a given yield. At 10% yield, STRD and STRF would trade at $100. At 6%, they'd trade at $166. Today, STRD trades at $67 — implying the market is pricing it like a ~15% yield instrument. That discount is either an opportunity or a warning, depending on what you believe about Strategy's durability.
Why Does STRD Trade at a Discount?
Fair question. If the math looks this good, why isn't everyone buying STRD until the price rises to par?
- Bitcoin risk: The market is pricing in the possibility that Bitcoin crashes and Strategy struggles to pay dividends.
- Newness: These are relatively new securities. Institutional investors move slowly. ETFs that hold them haven't fully launched yet.
- Optional dividends: STRD's dividends are technically at the company's discretion (though heavily incentivized to pay).
- Leverage risk: Strategy uses leverage — preferred shareholders are exposed to that, even if they're senior in the stack.
The counter-argument: Strategy holds 700,000+ Bitcoin. Annual dividend obligations on all preferred stock combined are measured in the tens of millions. The company could sell a fraction of a percent of its Bitcoin to fund years of dividends. The overcollateralization is extreme.