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Some followers of Michael Saylor have grown tired of his alliterative naming convention for a ballooning series of MicroStrategy (MSTR) preferred shares. After Strike, Strife, and now Stride, some shareholders just want to call a spade a spade. Indeed, according to several investors, his latest preferreds should be simply junk bonds . Saylor characterized Stride (STRD) as perpetual preferred stock with $100 of liquidation preference paying non-cumulative dividends at 10%. Bullish fans called his invention a “bitcoin black hole,” allowing time-space relocation of capital to benefit current MSTR shareholders with future opportunities. With Stride spinning this black hole, bullish shareholders saw “everything in the financial system being sucked in towards MicroStrategy.” Memes with singularity imagery proliferated across social media. STRD = SAYLOR'S BITCOIN BLACK HOLE In this hyper-charged breakdown, I peel open @Strategy and @Saylor's $STRD preferred shar...

As the price of bitcoin (BTC) declines towards the average purchase price at Strategy (formerly MicroStrategy), founder Michael Saylor is willing to pay USD dividends at up to 18% per year to access more capital. In an announcement about a new series of stock that he calls the “STRF Perpetual Preferred Stock,” Saylor revealed that Strategy is offering 5 million new shares with $100 of liquidation preference and limited conversion rights into MSTR common shares. Liquidation preference is the right to receive money in the event of a “liquidity” (payout) event such as an acquisition, public offering, or dividend. Instead of convertibility at a $1,000 strike price per MSTR share which is a marquee feature of Strategy’s STRK preferred shares, Saylor is simply focused on paying cash to entice investment in his new STRF preferred shares. Strategy is upping its dividend rate from STRK’s 8% rate. Instead, STRF holders will enjoy a 10% fixed dividend in USD that incre...