To make matters worse, tax complications on the dividend add extra strain due to MSTR’s lack of sufficient operating profits. This is a costly bump in the road for Saylor’s strategy.
MSTR’s leverage train hits a bump. Their $100 8% strike pref offering was priced at $80. After apparently tapping out the zero coupon converts market, Saylor hoped the pref market will feed his leverage appetite. It didn’t.
$80 is a steep discount (10% effective dividend)… pic.twitter.com/LLaXx9Xaek
— Novacula Occami (@OccamiCrypto) January 31, 2025