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BlackRock just added another $7 million worth of Strategy Inc.’s preferred shares to its iShares Preferred and Income Securities ETF, bringing total holdings to $656 million. For a company that rebranded from MicroStrategy to lean harder into its identity as a Bitcoin treasury firm, having the world’s largest asset manager steadily accumulate your preferred equity is about as strong a vote of confidence as it gets.
The purchase spanned four separate preferred share series issued by Strategy, reinforcing that this isn’t a one-off allocation but a deliberate, diversified bet across the company’s capital structure.
What PFF is actually buying
The iShares Preferred and Income Securities ETF, ticker PFF, is one of the largest preferred stock ETFs in existence. It’s designed for investors who want bond-like income with a slightly different risk profile, where you get priority over common shareholders for dividends but typically don’t get much upside if the stock price moons.
Strategy’s preferred instruments, including series like STRC, STRF, STRK, and STRD, are largely perpetual securities, meaning they don’t have a maturity date, and they pay variable or fixed dividends. STRC, sometimes called “Stretch,” currently offers a dividend yield in the neighborhood of 11.5-12% annually, paid in cash.
At various points, PFF’s exposure to Strategy’s preferred securities has represented roughly 3.3% of the ETF’s total assets, making PFF one of the largest holders of these instruments.
The bigger picture: BlackRock’s Strategy bet
This isn’t BlackRock’s only exposure to Strategy. In early 2025, the firm crossed the 5% ownership threshold in Strategy’s common shares, triggering a 13G filing with the SEC. BlackRock is building a multi-layered position across Strategy’s entire capital stack.
Earlier disclosures from PFF indicated holdings between $380 million and $471 million in Strategy’s preferred instruments, so the climb to $656 million represents a substantial ramp-up.
The trading activity around STRC has shown some volatility recently, reflecting both broader market dynamics and investor questions about dividend sustainability. But BlackRock’s continued accumulation suggests the firm’s internal models are comfortable with the risk.
What this means for investors
For yield-seeking investors, Strategy’s preferred shares offer double-digit yields backed by a company whose primary asset is Bitcoin, meaning the income stream carries a correlation to crypto markets that you won’t find in typical preferred stock.
PFF is held by retirement accounts, income-focused portfolios, and conservative allocators. The fact that 3.3% of that fund is linked to a Bitcoin treasury company would have been unthinkable five years ago.
Perpetual preferred securities with high yields typically carry that yield for a reason. If Strategy’s ability to service those dividends ever comes into question, whether from Bitcoin price declines, rising interest rates, or operational challenges, the preferred shares could trade well below par. Investors collecting 11.5-12% need to weigh that income against the tail risk of principal impairment.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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