Saylor’s Strategy $MSTR Selling Strife to Investors

Saylor's Strategy, and the trouble with Strife

Saylor's latest scheme's name, may say it all!  It's called Series A Perpetual Strife Preferred Stock!

As Alphaville says,

"Strife"? "Perpetual Strife"? Matt Levine at Bloomberg had initially suspected a typo when he read it, but 23 references in the document suggest not. Maybe it's an inside joke — the kind of thing that sounds clever at 5am at an after-party. Or perhaps it's an unwittingly honest nod to the drama surrounding the company's relentless bitcoin accumulation.

For one, it's not your typical (Micro)Strategy dilutive equity issuance; unlike the perpetual strike preferred securities ( $STRK ), it is not convertible into common stock.

So it's just strife for you!

Michael Saylor, executive chair and Bitcoin Maximalist Extraordinaire, is pitching it as a way for the "vast pool of fixed-income investors, who generally prefer stability and predictable returns", to "participate" in the rise of Bitcoin. Yet Strife offers neither. It exposes investors to bitcoin's downside —since Strategy's creditworthiness is intrinsically linked to its crypto holdings— without giving them any upside if the Bitcoin soars. The dividend is fixed, so if bitcoin "moons", Strife holders are left watching and drooling from the sidelines. "It's like being invited to an all-you-can-eat buffet but only allowed to smell the food."

Read the whole article on the FT's Alphaville here.

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