BlockBeats news, January 7, MicroStrategy plans to raise up to $2 billion by issuing preferred stock to advance its '21/21' plan, which involves selling $42 billion worth of stocks and fixed income securities. Benchmark stock analyst Mark Palmer stated that by shifting to a permanent preferred stock strategy, MicroStrategy can attract institutional investors such as insurance companies, pension funds, and banks.
These entities typically favor assets with fixed dividends and relatively low volatility. Unlike bonds, permanent preferred stocks do not have a maturity date or mandatory redemption schedule; instead, they pay fixed dividends indefinitely as long as the issuing company is still operating. Benchmark reiterated its 'buy' rating on MicroStrategy stock and maintained a target price of $650. (The Block)