MicroStrategy Launches Perpetual Preferred Stock Offering, Attracting Institutional Interest
MicroStrategy (MSTR), widely known for its inventive capital-raising methods to fund its Bitcoin (BTC) acquisitions, has rolled out a new financial instrument this week—a perpetual preferred stock offering (STRK). Spearheaded by Executive Chairman Michael Saylor, the company continues to take bold steps in financing its Bitcoin strategy.
Preferred stock occupies a unique position between debt and equity on a corporate balance sheet, offering investors the steady returns of bonds, while also granting them partial ownership in the company.
Ben Werkman, a leading analyst covering MicroStrategy, shared on X his perspective on why preferred stock is becoming an increasingly attractive option for institutional investors. He emphasized its stable yield, absence of maturity risk, and potential equity upside as standout features.
“I can envision a scenario where preferred stock takes over some of the convertible bond market for fixed-income accumulation, thanks to its lack of maturity risk,” Werkman noted. “Preferred stock has the potential to deliver far more value than convertible bonds and certainly more than direct equity offerings.”
Jeff Park, head of Alpha Strategies at Bitwise Investments, also weighed in, describing the offering as one of the most appealing investment vehicles in today’s market and a next-generation financial product.
“STRK is a near-perfect instrument,” Park said. “It offers two significant ways to benefit: First, if interest rates drop, it boosts the principal; second, if MicroStrategy’s value rises, you can convert and hold a more volatile asset or choose to sell.”
The BlackRock iShares Preferred and Income Securities ETF (PFF), which is the largest U.S. preferred stock ETF, manages around $15 billion in assets. Its biggest investors include major corporations such as Boeing (BA), Wells Fargo (WFC), and Citi Group (C).
MicroStrategy is set to finalize and announce the pricing details for its new preferred stock offering after the market closes on Thursday.
