MSTR Benchmark Investor Mtg Summary (Patreon)

Benchmark recently hosted an investor meeting with Michael Saylor, the CEO of MicroStrategy ($MSTR). Here are the key takeaways from the meeting:

Preferred Stock Strategy

• Saylor favors preferred stock for $MSTR's capital structure

• Believes it reduces fragility by mitigating liquidity risk

• Appreciates the extended duration of perpetual preferreds compared to typical convertible bonds (CBs)

Bond Market Perspective

• Saylor views the bond market as "dead-money" and "broken"

• Sees perpetual preferred stock as an "interesting vehicle" due to its dividend payments (mid-single digits eg 5%)

• I think he could start issuing convertibles at a credit coupon to help fund this.

Investor Proposition

• $MSTR's perpetual preferred stock offers a "unique proposition" to investors

Analyst Rating

• Benchmark maintains a "Buy" rating on $MSTR

• Price target set at $650

h/t to Sanjay for the reporting