In summary, MicroStrategy plans to issue 2,500,000 shares of Series A perpetual convertible preferred stock in the public market.

What is "Perpetual Convertible Preferred Stock"?

In simple terms, it is a type of stock that combines fixed income and the potential for stock appreciation, and it is valid indefinitely without an expiration date.

With no expiration date, $MSTR does not need to repay the principal. Shareholders can hold it indefinitely, receive dividends before common stock shareholders, and have priority in compensation during liquidation (only after creditors). Holders can convert this type of preferred stock into common stock when conditions are favorable, enjoying the benefits of the company's stock price increase. MSTR will regularly pay fixed dividends (similar to interest on deposits), and even if the company is temporarily unprofitable, the dividends will accumulate and be paid later.

Assuming you buy MicroStrategy's perpetual convertible preferred stock:

You will receive fixed dividends each quarter, for example, $5 per share (this is just an example).

If MicroStrategy's stock price rises, you can convert the preferred stock into common stock and earn more money.

If the company is liquidated, your compensation priority is higher than that of common stock shareholders.

The funds raised from this issuance of 2,500,000 shares will be used to purchase #Bitcoin and for company operations.

PS: Although this is not an ATM, it is essentially similar to an ATM, as it involves issuing more stock, which is not very friendly for the price of MSTR shares.

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