Strategy (formerly MicroStrategy) has launched its third bitcoin-backed preferred stock, STRD, on Nasdaq, offering a 10% annual dividend and raising nearly $980 million. This new Series A preferred issue adds to the company’s growing set of funding tools aimed at accelerating its bitcoin acquisition strategy.

Priced at $85 per $100 face value, STRD yields approximately 11.75%, drawing strong investor interest that expanded the deal size from an initial 2.5 million shares to 11.76 million. Despite the high yield, the stock comes with non-mandatory and non-cumulative dividends, meaning missed payments do not accrue and are not guaranteed—a feature that’s raised eyebrows in the financial community for its investor risk.

STRD is junior to Strategy’s previous preferred stocks—STRF and STRK—which carry lower yields but higher priority in the capital structure. Nonetheless, STRD is backed by the company’s substantial bitcoin holdings, now totaling over 582,000 BTC (worth more than $64 billion at current prices), against roughly $11 billion in debt and preferred equity. This results in a strong asset coverage ratio, which Strategy highlights as a key risk mitigator.

Executive insiders, including CEO Phong Le and CFO Andrew Kang, have purchased STRD shares personally, a sign of internal confidence in the offering. While some analysts remain skeptical of the non-cumulative dividend structure, investor demand suggests a growing appetite for high-yield, bitcoin-linked financial products.

STRD marks another step in Strategy’s broader effort to transform itself into a hybrid software-crypto investment firm. With nearly $3 billion raised this year alone through various equity and bond offerings, the company remains committed to expanding its bitcoin reserves, using innovative financing vehicles to do so.

As Strategy continues its aggressive accumulation, STRD provides a high-yield option for those comfortable with its unique risk profile—offering potentially rich rewards backed by the digital gold of bitcoin.