Convertible preferred

A convertible preferred pays a preferred dividend and also gives the holder the right to convert each share into a set number of common shares. While the common share price is well below the conversion price, the security behaves mainly like a fixed-rate preferred. As the common price approaches or passes the conversion price, the security behaves more like the common stock.

How it applies to STRK

STRK (Strike) is Strategy's convertible series (certificate of designations, 8-K filed 5 February 2025):

• Conversion: the holder may convert on any business day into 0.1000 MSTR class A shares per STRK share. That is an initial conversion price of $1,000 per MSTR share, subject to anti-dilution adjustments.
• Dividend: 8.00% a year on $100, quarterly and cumulative. Unlike Strategy's other series, STRK dividends may be paid in cash, in class A common stock (valued at 95% of a volume-weighted average price, subject to a floor price) or in a mix.
• Rank: junior to STRF, STRC and STRE, and senior to STRD and common.

Strategy's own credit metrics treat "in-the-money" STRK shares as converted and leave them out of preferred claims (FWP, 24 August 2026). On 21 August 2026 MSTR closed at $119.25 (same source), far below the $1,000 conversion price.

Metaplanet's Class B ("MERCURY")

Press coverage describes Metaplanet's privately placed Class B preferred as carrying a 4.9% fixed dividend on ¥1,000 and an option to convert into common at ¥1,000 (CoinDesk, 20 November 2025). 21DC has not verified these terms against Metaplanet's primary disclosures.

What to check in the filing

• Conversion ratio and how it adjusts
• Whether the issuer can force conversion
• How dividends may be paid (cash or shares)