MSTR Saylor Doing another $21BN But w $STRK (Patreon)

This is huge news. Rem 21BN is over half of what the ETFs took in during the record year 2024 combined. This is 262,500 BTC - rem only 164K will be mined in 2025.

Preferred stock sits between debt and common equity. It’s less dilutive to existing common shareholders than issuing more MSTR stock outright as conversion threshold happens much later.

The 8.00% coupon is higher than typical bond yields but lower than the cost of equity, making it a cost-effective way to raise long-term funds.

The conversion feature adds upside potential tied to Bitcoin’s price, appealing to growth-oriented investors without the full risk of common stock. This is sustainable if Bitcoin appreciates or if the company uses stock to pay dividends, reducing need to make profits or use cash

By using an ATM program, MicroStrategy can sell shares opportunistically over an extended period. If Bitcoin (and thus MSTR’s stock) rallies, it can issue shares at higher prices, maximizing proceeds. Conversely, it can pause sales during downturns, avoiding dilution at low valuations.

The 8.00% coupon is the fixed annual dividend rate on the STRK :

• Cost to MicroStrategy: For every $1 billion raised, MicroStrategy pays $80 million in annual dividends ($20 million quarterly). On the full $21 billion, that’s $1.68 billion yearly. This is sustainable if Bitcoin appreciates or if the company sells more shares to pay dividends, reducing cash outflows - aka infinite money glitch

• Investor Return: For investors, an 8% yield is compelling, especially if bought at or below the $100 liquidation preference. If market prices dip (e.g., to $80, as in a prior $563M offering), the effective yield rises (10% in that case), making it even more attractive.

MicroStrategy’s $21 billion STRK ATM program with an 8.00% coupon is a bold move to supercharge its Bitcoin treasury strategy. It leverages perpetual preferred stock’s permanence and convertibility to raise massive capital flexibly, betting big on Bitcoin’s long-term value. For MSTR, it’s a high-stakes play that balances cost, control, and growth potential