Is MicroStrategy’s $563M STRK really oversubscribed?
Depending on which news outlet you read this morning, investment demand for MicroStrategy’s new STRK was either far less than or double the company’s goal. According to a press release, MicroStrategy raised $563.4 million via its new Series A Perpetual Strike Preferred Stock after targeting just $250 million for that capital raise. That version of the news lit up one side of the media this morning with a fanfare of bullish headlines from crypto publications. In stark contrast, traditional finance reported on the raise with more detail and none of this bullishness. Barron’s, for example, led with “MicroStrategy’s New Preferred Issue Yields 10% as Stock Sells at Discount.” Careful observers, rather than simply accepting the news of an oversubscribed financing round, calculated far more sobering numbers than crypto publications. Although MicroStrategy’s headline of $584 million certainly indicated plenty of demand from investors, experienced investors know that ...