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Institutions Are Primed for MicroStrategy’s Preferred Stock Sale, Say Analysts

Disclaimer: The analyst who wrote this piece owns shares of MicroStrategy (MSTR).
To say that MicroStrategy (MSTR) has been at the lead of creatively raising capital with which to buy massive amounts of bitcoin (BTC) would be an understatement. Led by Executive Chairman Michael Saylor, the company this week opened a new front along those lines with its perpetual preferred stock offering (STRK).
Preferred stock sits between equity and debt on the corporate balance sheet, offering investors the regular return of bonds while giving them an ownership stake in a company.
Well-followed MicroStrategy analyst Ben Werkman, posted on X about the attraction preferred stock can offer institutional investors due to its lack of maturity risk, stable yield and optional equity upside.
«I could see a scenario where [the preferred stock] starts taking some of the convertible bond space for fixed income accumulation due to the lack of any point in time maturity risk,» said Werkman. «Preferred stock has the potential to be massively more accretive than any convertible offering has been and definitely more accretive than [share sales].»
Similar sentiments came via Jeff Park, head of alpha strategies at Bitwise Investments, who called MSTR’s preferred stock offering one of the most compelling securities in the market and a next-generation investment vehicle.
«STRK is a near-perfect instrument,» wrote Park. «It gives you two chances to win: First, when rates go down, it’s a huge boon to the principal, and two, if MicroStrategy goes up first, then you have a deep in-the-money (ITM) option to convert and own the higher volatility asset or just directly sell.»
The largest of the U.S. preferred stock ETFs is the BlackRock iShares Preferred and Income Securities ETF (PFF), which has roughly $15 billion in assets under management. The largest holders of PFF ETF are major corporations such as Boeing (BA), Wells Fargo (WFC) and Citi Group (C).
The final pricing terms of the new security are to be completed and announced after the market closes on Thursday.
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CoinDesk 20 Performance Update: NEAR Gains 11.7%, Leading Index Higher Over Weekend

CoinDesk Indices presents its daily market update, highlighting the performance of leaders and laggards in the CoinDesk 20 Index.
The CoinDesk 20 is currently trading at 2538.74, up 3.0% (+74.8) since 4 p.m. ET on Friday.
Nineteen of 20 assets are trading higher.
Leaders: NEAR (+11.7%) and APT (+8.7%).
Laggards: BCH (-0.5%) and XRP (+1.9%).
The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally.
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Coinbase-Backed Zora to Airdrop Token After a Week of Contentious Promotions

Onchain social media platform Zora said its ZORA token will go live on April 23, days after it gained viral traction on X after a push from the Base network team.
It outlined two snapshots for the drop in an X post, one covering activity from January 1, 2020, to March 3, 2025, and another from March 3 to April 20, 2025.
Snapshots are the ability to record the state of a blockchain at a specific point in time, often used to reward users in tokens based on their activity on that blockchain over a specific time period.
The Coinbase-backed Zora came into the spotlight last week after a push from Base creator Jesse Pollack on how the platform allowed the creation of “content coins” — or tokens that represented their underlying picture or word phrases in a tradeable form.
Pollack’s amplifications of several Zora-created tokens drew hype and activity to the platform, with user count and token creation setting records late last week. It attracted over 230,000 “new” traders (or wallets that interacted with the platform for the first time) on Sunday, data shows.
Base’s official X account posted about one such token, called «Base is for everyone,” which sent its market cap soaring from a few thousand to over $17 million within hours.
Blockchain sleuths later found three crypto wallets bought the tokens ahead of the official announcement — netting them a profit of $666,000, as reported.
Crypto exchange Coinbase, which develops and maintains Base, told CoinDesk at the time that is for everyone coin is not the official cryptocurrency of Base, and the layer 2 did not directly sell those.
Announcement of a token following such promotions has sent X users erupted with accusations of insider trading and poor communication.
“So it was literally an airdrop shill to create hype and liquidity for a dump of supply controlled by Coinbase Ventures? Got it,” snarked user @DCBcrypto.
Others, like @KienNguyen_NFT, predicted “Day 1 listing + insiders making 8 figs incoming,” while @blknoiz06 gave a backhanded compliment: “good marketing.”
Pollack has since squashed rumors of the Zora promotions being a marketing campaign, however.
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Strategy Buys $555M of Bitcoin, Increases Total Stash to 538,200 BTC

Strategy (MSTR) has added 6,556 bitcoin (BTC) to its balance sheet, spending $555.8 million in the process, according to a regulatory filing published on Monday.
The purchase was funded using proceeds from the company’s two at-the-market (ATM) stock offering programs, the filings notes.
The firm, the largest corporate holder of bitcoin, sold 1.76 million shares of its Class A common stock and over 91,000 shares of a preferred stock series — STRK — between April 14 and April 20.
The common stock sale brought in $547.7 million, while the preferred shares added another $7.8 million. The latest acquisition boosts Strategy’s total holdings to 538,200 BTC, purchased at an average price of $67,766 per coin.
The Michael Saylor-led company has spent $36.47 billion on bitcoin to date. Shares of MSTR are up 2.77% in pre-market trading as BTC rose to $87,300.
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