Disclaimer: The analyst, who wrote this piece, owns shares in Microstratey (Mstr).
To say that Microstratey (MSTR) has been at the forefront of creatively raising capital to buy huge amounts of Bitcoin (BTC) would be an understatement. Led by executive chairman Michael Saylor this week opened a new front during these lines with his eternal preferred stock offering (STRK).
Preferred stock sits between equity and debt on the company’s balance sheet and offers investors the regular return on bonds while giving them an ownership interest in a company.
Good subsequent Microstratey analyst Ben Werkman, posted to X on the preferred stock, can offer institutional investors due to its lack of maturity risk, stable yield and optional equity upwards.
“I could see a scenario where [the preferred stock] begins [share sales]”
Similar emotions came via Jeff Park, head of alpha strategies at BitWise Investments, which called Mstr’s favorite stock, offering one of the most compelling securities on the market and a next generation investment vehicle.
“Strk is an almost perfect instrument,” Park wrote. “It gives you two chances of winning: First, when the rates go down, it is a huge blessing for the principal, and two, if microstratey first goes up, then you have a deep money (ITM) opportunity to convert and convert and not the higher volatility active or just directly sell.
The largest of the US favorite ETFs is Blackrock Ishares Preferred and Income Securities ETF (PFF), which has approx. $ 15 billion in assets under management. The largest holders of PFF ETF are large companies such as Boeing (BA), Wells Fargo (WFC) and Citi Group (C).
The final price conditions for the new security must be completed and announced after the market closes on Thursday.
