Michael Saylor keeps diluting MSTR holders after preferred sale flops
A few weeks ago, MicroStrategy (MSTR) founder Michael Saylor was boasting about a breakthrough in financial engineering. A black hole of non-dilutive, dividend-yielding preferred shares could suck in dollars from fixed income investors and allow the company to accrete vast quantities of bitcoin (BTC) for shareholders on a dilution-adjusted basis. A tool of ideal torque to raise capital for BTC purchases without diluting common shareholders , Saylor sang the praises of three preferred series: Strike (STRK), Strife (STRF), and Stride (STRD). All of them attracted some capital for MicroStrategy’s 597,325 BTC treasury that now exceeds 3% of BTC’s circulating supply. Fans of Saylor thought demand would continue to grow. However, it wouldn’t be long before the arc of reality bent away from Saylor’s event horizon. Saylor goes back to the ATM Indeed, MicroStrategy’s latest Securities and Exchange Commission filing discloses that the company has already returned to...