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MicroStrategy’s 8% Preferred Issue Is Coming Thursday: What Investors Should Know - Barron's

1. MicroStrategy plans to issue $250M in convertible preferred stock. 2. The new securities will yield 8% annually, attracting diverse investors. 3. MicroStrategy holds nearly $50B in Bitcoin, supporting its financial strategies. 4. Convertible preferred shares can be swapped for MicroStrategy common stock. 5. Dividends on the preferred stock could be paid in shares or cash.

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FAQ

Why Bullish?

The convertible preferred stock will diversify funding and attract new investors. Historical examples show successful convertible offerings have positively influenced stock prices.

How important is it?

The article discusses significant funding strategies, directly impacting MicroStrategy's investment potential.

Why Long Term?

The issuance will enhance MicroStrategy’s market position over time, unlike immediate market reactions. Previous stock offerings generally build value in underlying companies gradually.

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