MicroStrategy's New Preferred Shares

MicroStrategy is introducing two new preferred share offerings, Strike (STRK) and Strife (STRF), aimed at providing more stability for investors. These offerings are expected to shift the company’s at-the-market (ATM) usage from Class A shares to preferred shares, which alleviates previous selling pressure experienced by Class A shareholders. STRF is a fixed income product that offers a 10% annualized dividend yield and is designed for risk-averse investors, as it provides seniority in the capital structure during liquidation. Conversely, STRK differs in its capacity for conversion into Class A shares and is positioned lower in the capital structure, making it slightly more volatile but still appealing to those looking to invest in MicroStrategy's growth potential.