The post Strategy’s STRD credit spread tightens as weekly ATM issuance hits record high appeared on BitcoinEthereumNews.com.

Strategy’s (MSTR) junior preferred stock Stride (STRD) saw its credit spread tighten further at the end of last week, possibly highlighting strong demand for the company’s highest-yielding preferred offering. The spread between the yield of STRD and that of the U.S. 10-Year Treasury Note fell to a new low of 8.12% as of Dec. 12, according to data from Bitcoin for Corporations (the spread has widened back closer to 9% on Monday as bitcoin tumbled below $86,000). Fixed-Rate Credit Spreads: STRF, STRK, STRD vs U.S. 10 Year Treasury Note (Bitcoin for Corporations) A credit spread represents the additional return investors require to own a riskier security, such as a bond or preferred stock, rather than a low-risk benchmark like the U.S. 10-year Treasury. This latest data point for STRD continued what’s been a steady decline since mid-November. A shrinking STRD to Treasury spread might typically signal stronger investor demand and improving perceptions of credit quality. Investors may be reassessing Strategy’s financial position and bitcoin-centric business model, viewing STRD as more stable than before and therefore demanding a smaller premium over government debt. Also, Strategy earlier in December bolstered the credit profile of its preferred securities by establishing a $1.44 billion reserve, covering more than 21 months of dividends, while continuing to accumulate bitcoin, which has increases balance sheet collateral supporting the preferred stocks. Why STRD’s effective yield is drawing attention The yield gap between STRD and Strategy’s more senior preferred offerings has resurfaced in market commentary. At current pricing, STRD offers a yield premium of roughly 320 basis points over another preferred series, STRF, despite both instruments carrying similar stated dividend rates. As CoinDesk reported on Oct. 20, Michael Saylor at the time dismissed concerns about potential non-payment of dividends for the more junior offering on the basis that failing…

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Filed under: News - @ December 16, 2025 5:22 am