MicroStrategy Plans $2 Billion Fundraising Through Preferred Stock Issuance

According to Odaily, MicroStrategy is planning to raise up to $2 billion by issuing preferred stock as part of its '21/21' strategy, which involves selling $42 billion worth of stocks and fixed-income securities. Mark Palmer, a stock analyst at Benchmark, noted that by adopting a perpetual preferred stock strategy, MicroStrategy could attract institutional investors such as insurance companies, pension funds, and banks. These entities typically prefer assets with fixed dividends and relatively low volatility. Unlike bonds, perpetual preferred stocks do not have a maturity date or mandatory redemption schedule, allowing for indefinite fixed dividend payments as long as the issuing company remains operational. Benchmark has reiterated its 'buy' rating for MicroStrategy's stock, maintaining a target price of $650.