#MSTR Issues $2 Billion in Preferred Stock#
Hot Topic Overview
Overview
MicroStrategy plans to raise $2 billion through the issuance of perpetual preferred stock to further increase its Bitcoin holdings. The funds are expected to be in place by the first quarter of 2025. The perpetual preferred stock has no fixed maturity date, holders receive a fixed dividend, but have no voting rights. Analyst Benchmark maintains a Buy rating on MSTR with a price target of $650, and believes the perpetual preferred stock offers investors a “unique proposition” and makes MSTR's capital structure less fragile by lowering liquidity risk. MicroStrategy currently holds 450,000 Bitcoin and is expected to vote on an increase in the authorized number of preferred and common shares at a special shareholder meeting on January 21.
Ace Hot Topic Analysis
Analysis
MicroStrategy plans to raise $2 billion through the issuance of perpetual preferred stock to further increase its Bitcoin holdings. The preferred stock has no fixed maturity date, holders receive a fixed dividend, but have no voting rights. Benchmark analysts view the perpetual preferred stock as an “interesting tool” in MicroStrategy’s capital structure, as it makes the company’s capital structure less fragile by lowering liquidity risk. Benchmark maintains a Buy rating on MSTR with a price target of $650. MicroStrategy is expected to vote on an increase in the authorized number of preferred and common stock at a special shareholder meeting on January 21. MicroStrategy currently holds 45,000 Bitcoins and plans to use the funds to continue to increase its Bitcoin holdings.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
MSTR issued perpetual preferred stock to reduce liquidity risk and strengthen the company's capital structure.
Perpetual preferred stock has a longer maturity, making it more attractive than traditional convertible bonds.
MSTR's issuance of perpetual preferred stock provides investors with a unique investment opportunity and provides the company with a new source of funding.
Benchmark maintains a buy rating on MSTR with a price target of $650, optimistic about the company's future development.