#MicroStrategy Issues Preferred Stock#
Hot Topic Overview
Overview
MicroStrategy plans to issue $2 billion in perpetual preferred stock to raise capital, with specific terms expected to be announced in the first quarter of 2025. Perpetual preferred stock has no fixed maturity date, holders receive a fixed dividend, but have no voting rights. MicroStrategy founder and CEO Michael Saylor believes perpetual preferred stock makes the company's capital structure less vulnerable by reducing liquidity risk, and views it as an "interesting tool" because the bond market is seen as "dead money" and "bankrupt." Benchmark maintains a Buy rating on MicroStrategy with a price target of $650, and believes the preferred stock offers investors a "unique proposition." MicroStrategy currently holds 450,000 Bitcoin and will vote on increasing the authorized number of preferred and common shares at a special shareholder meeting on January 21.
Ace Hot Topic Analysis
Analysis
MicroStrategy plans to issue $2 billion in perpetual preferred stock to raise funds, with specific terms expected to be announced in the first quarter of 2025. Perpetual preferred stock has no fixed maturity date, holders receive a fixed dividend, but have no voting rights. Benchmark maintains a buy rating on MSTR with a price target of $650. MicroStrategy founder and CEO Michael Saylor believes perpetual preferred stock can reduce liquidity risk and strengthen the company's capital structure. He sees the bond market as "dead money" and "bankruptcy," believing perpetual preferred stock is an "interesting tool" through dividend payments. Saylor believes MSTR perpetual preferred stock provides investors with a "unique proposition." MicroStrategy currently holds 450,000 bitcoins, and is expected to vote on increasing the authorized number of preferred and common shares at a special shareholder meeting on January 21.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
MicroStrategy issuing perpetual preferred stock can reduce liquidity risk and make the company's capital structure more robust.
Perpetual preferred stock has a longer maturity and is more attractive than traditional convertible bonds.
Perpetual preferred stock has become an “interesting tool” through dividend payments, as the bond market is considered “dead money” and “bankrupt”.
MicroStrategy's perpetual preferred stock offers investors a “unique proposition”.