A few weeks ago, MicroStrategy (MSTR) founder Michael Saylor boasted about his financial engineering breakthrough.
A black hole of preferred stocks that dividends in a non-diluted way can inflate dollars from bond investors and can inflate diluted-adjusted shareholder Bitcoin (BTC).
Ideal torque tool for raising capital for BTC purchases Without diluting ordinary shareholdersSaylor sang praise for three priority series: Strike (STRK), Strife (STRF), and Stride (STRD).
They all collected capital from MicroStrategy’s 597,325 BTC Treasury.
Saylor fans thought demand would continue to increase. But it won’t take long for the arc of reality to leave Saylor’s event horizon.
Saylor returns to the ATM
In fact, MicroStrategy’s latest Securities and Exchange Commission filing reveals that. The company is already back to its old strategy Dump common stock and dilute shareholders directly.
With these market offerings (ATMs), the company sold 1.3 million MSTRs from June 23-29, raising $519.5 million.
Even if all of this money is done directly to purchase BTC directly, there is no immediate profit as shareholders will be diluted directly from these ATMs.
Read more: If Michael Saylor pays 18% dividend and needs to buy Bitcoin
In contrast, the company admitted it was able to sell $28.9 million worth of STRF and $29.7 million worth of STRF over the same period.
In other words, Only 10% A $578.1 million salary increase was preferred stock.
Saylor’s preference, non-diluted black holes, could not suck many problems, even when present. In fact, 90% of pay increases were typical ATMs.
Read more: Michael Saylor’s Strategy constitutes metrics to explain MSTR dilution
Even Saylor’s preference requires cash payments
In summary, 10% of the capital raised from the latest reporting period from June 23-29 will require future cash (dividends) payments from the Company, with 90% diluting common shareholders directly.
The irresponsibly long MSTR moderator, a self-proclaimed X-community of recklessness, tried to explain the gloomy percentage. In his view, ATMs “should have been “consistent with the capital structure” and “should have been expected” to serve the dividend payments.
Josh Mandel is a skeptic of Saylor’s ability to continue to attract demand for exotic financial products such as STRK, STRF and STRD, and fought back at its characterization and noted the huge size of ATMs compared to its modest dividend obligations.
He explicitly told Saylor’s apologist, “You might just be full of s**t” and “confusing people who are lying.”
