Preferred Stock
Equity securities with priority over common stock for dividends and assets, used in Strategy’s stack for Bitcoin funding.
What is Preferred Stock?
Preferred stock is a class of ownership providing fixed dividends and asset priority in liquidation, without voting rights, often perpetual or convertible. In digital asset contexts, companies like Strategy issue it to raise non-dilutive capital for Bitcoin treasuries, offering yields above bonds. Strategy’s offerings include STRK (8%), STRF (10%), and STRD (10%), totaling $1.668 billion outstanding as of May 2025.
It ranks above common equity but below debt, with cumulative dividends and penalties for misses, appealing for income with less volatility than MSTR.
Related Terms
Sell Walls
Large accumulations of sell orders at a specific price level, forming a barrier against upward price movement.
Compound
A decentralized finance (DeFi) protocol that enables lending and borrowing of digital assets through algorithmically managed interest rate markets.
ERC-721
A standard for non-fungible tokens (NFTs) on Ethereum, representing unique digital assets.
Ethereum Lightweight Client
An Ethereum client that operates without storing the full blockchain or validating blocks and transactions, functioning primarily as a wallet for creating and broadcasting transactions.
DYOR
Do Your Own Research (DYOR) is a widely used acronym in the digital asset space, urging investors to independently verify information before committing funds to any project or token.
Hashrate of Bitcoin
The total computational power used by the Bitcoin network to secure transactions and validate blocks, measured in hashes per second (H/s).