Every 1% improve in coupon shaves off roughly 1x of torque over 10 years. STRKâs 8% is the candy spot for max torque. STRDâs 11.75% is dear, limiting upside.
If MSTR can skip your dividend with out consequence (like in STRD), youâre taking extra threat. In STRF and STRC, theyâll owe you back-payments, which protects your long-term return.
Solely STRK is convertible. Meaning you may find yourself with MSTR shares if issues go nicely â including upside torque. However that additionally dilutes present widespread shareholders.
- Quarterly (STRK, STRF, STRD) might swimsuit establishments and funds.
- Month-to-month (STRC) appeals to these needing common money, like pensions and income-focused buyers.
Even when a most popular trades at $85 or $118, MicroStrategy pays the coupon on the par worth ($100). For buyers, this implies yields fluctuate based mostly on market worth. For MicroStrategy, what issues is what they agreed to pay at issuance.