New MSTR $2BN preferred stock issuance (Patreon)

A perpetual preferred stock is a mix of debt and equity. It gives fixed dividends forever, with no end date. In a company's structure, it's between debt and common stock. This means preferred shareholders get dividends before common shareholders but after those who lent money to the company. If there are no dividends for common shareholders, preferred shareholders still get paid.

Note this is on top of the 21/21 plan.

The preferred stock issuance does not cause dilution per se because:

• It's higher in the capital structure than common stock

• It typically pays a fixed dividend rather than representing ownership

• It doesn't grant voting rights like common stock

Saylor has already hinted next Convertible would be at a negative interest rate - they can use this to pay Div on Preferred. eg

For example:

• Issue $4 billion in convertible debt at -3% interest rate.

• Use the proceeds to finance $2 billion of preferred stock paying 6% dividend

• This is what I call financial jiu jitsu.

We have to see how this all pans out but net net this is better medium term for us - as shareholders not getting ATMd to death.