This means that MicroStrategy's executives are showing confidence in the company's financial strategy but are opting for higher-yielding preferred stock rather than common stock. The new preferred stock (STRF) offers a significantly higher yield (11.75%) compared to the existing convertible preferred stock (STRK) at 9.2%. The fact that $711 million was raised indicates strong investor interest in this high-yield security.
A key takeaway is that these new shares are not convertible into common stock, reinforcing that executives are prioritizing fixed income over potential stock appreciation. The lack of common stock purchases since 2022 may suggest that they see more stability or better returns in these structured investments rather than betting on stock price growth.
