STRK

The collapse of MSTR and its universe of preferred shares has raised existential risks from a Bitcoin dip spiral. MSTR's market-adjusted net asset value has fallen to 0.99x, a level that limits its ability to purchase BTC through issuing new shares. While STRF is cumulative, which limits the risk of a coupon suspension, a BTC negative dip spiral and decline in MSTR's USD reserve coverage to 9.8 months poses a threat.

Michael Saylor's STRC stock has made headlines this week as its implosion gained momentum amid the ongoing crypto market weakness. The Variable Rate Series A Perpetual Stretch Preferred Stock plunged from the par level of $100 to a record low of $72.60.

Strategy offers four perpetual preferred shares ('STRXs') targeting high-yield investors seeking Bitcoin exposure without direct crypto ownership. I rate STRF and STRD a BUY for their 10%+ yields, with STRF offering top liquidation priority and STRD higher yield but greater risk. I rate STRK a BUY for Bitcoin holders desiring income with potential equity upside through convertibility into MSTR common stock.