What is the difference between the permanent preferred stock STRK of MicroStrategy and the common stock? Can retail investors purchase it?

MicroStrategy, a self-proclaimed Bitcoin development company, announced the issuance of perpetual preferred stock STRK to further strengthen its balance sheet and acquire more BTC. In addition, MicroStrategy spent approximately $1.1 billion to acquire 10,107 BTC at an average price of $105,596.

MicroStrategy perpetual preferred stock STRK

MicroStrategy has applied for the stock code “STRK” for a total of 2.5 million shares of its (perpetual preferred stock, also known as perpetual preferred stock ). According to the press release, the funds raised from this issuance will be used to further strengthen MicroStrategy’s balance sheet and acquire more Bitcoin. The functions of perpetual preferred stock are as follows:

Enjoy liquidation preference of $100 per share.

Convertible into Class A common stock under certain circumstances

Cash dividends are paid quarterly, at the end of March, June, September, and December (

In certain circumstances, MicroStrategy and holders may redeem shares

No voting rights

What are the differences between preferred stock, common stock, and convertible bonds?

Preferred stock and common stock both belong to shareholders’ equity, while convertible bonds belong to bonds. Therefore, in the liquidation of a company, the priority order is: convertible bonds > preferred stock > common stock.

Chain News will compare the three different products listed in the following diagram.

Why choose ‘Perpetual Preferred Stock’?

The characteristic of perpetual preferred shares is that they