Michael Saylor's Strategy Inc. (MSTR) Preferred Shares Outperform Peers, Demonstrate Higher Liquidity

The two-week-old preferred shares issued by Michael Saylor-led Strategy Inc. MSTR have been seven times more liquid, outperforming its peers by 19%.

Michael Saylor-led Strategy Inc.'s (NASDAQ:MSTR) two-week-old preferred shares have traded seven times more than its peers, while also outperforming them by 19%, the company's CEO revealed in a recent post.

What Happened: Saylor, who is also the founder and chairman of the Bitcoin (CRYPTO: BTC) treasury company, is highlighting the performance of STRK shares, which were offered at $80 per share.

The Bloomberg data, shared by Saylor in a graphic via an X post, shows that these preferred shares demonstrate significantly higher liquidity than their peers.

"In the initial two weeks of trading, $STRK is the best performing and most liquid perpetual preferred security," Saylor wrote.

According to the note, an increase in the price of the preferred shares will push the yield down, and a drop in price will push the yield up.

Despite the increase in STRK value by 16.10% to $94.04 apiece since inception, the note stated that “Yield is very high. It is significantly above many preferred equity ETFs that are closer to 6%.”

“Additionally, it is a way to indirectly wager on the price of Bitcoin due to Strategy’s common stock correlation with the crypto," it added.

Strategy held an aggregate of approximately 478,740 bitcoins as of Feb. 10. These coins represent 2.28% of the total supply of all Bitcoins, which were acquired at an aggregate price of $31.1 billion and an average purchase price of approximately $65,033 per coin, according to its SEC filing. The holdings were valued at $46.148 billion, as per BiTBO.

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Price Action: MSTR rose by 3.94% on Friday and advanced further by 0.24% in after-hours. The exchange-traded fund tracking the Nasdaq 100 index, Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) rose by 0.42% to close at $538.15 on the same day.

MSTR shares have gained 12.57% on a year-to-date basis, whereas it was up by 379.05% over the last year.

The average price target among 14 analysts tracked by Benzinga is $494.93 with a ‘buy’ rating. The estimates range from $140 to $690 apiece. Recent ratings from Barclays, Keefe, Bruyette & Woods, and Maxim Group suggest a $493.67 target, implying a potential upside of 45.82%.