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MSTR
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200 days

MicroStrategy’s New Preferred Issue Yields 10% as Stock Sells at Discount - Barron's

1. MicroStrategy issued $584 million of convertible preferred stock at $80 per share. 2. The offering size increased from $250 million due to lower than expected demand. 3. The dividend yield reached 10%, higher than the anticipated 8% if priced at $100. 4. Shares convertible to MicroStrategy common stock, influencing investor sentiment. 5. This is MicroStrategy's first preferred stock offering, impacting its capital structure.

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FAQ

Why Bearish?

The issuance at a discount indicates weaker demand, potentially lowering market confidence, similar to past reactions in similar bond offerings.

How important is it?

The capital structured through this offering directly affects MSTR's financial positioning and market perception.

Why Short Term?

The immediate market reaction to this issuance likely affects MSTR's stock price in the short run, but could stabilize later.

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