MicroStrategy invents a new way to dilute shareholders with STRK
MicroStrategy (MSTR) Executive Chairman Michael Saylor has announced a number of ways to dilute his shareholders. On Monday, the company announced a brand new type of stock with an independent ticker symbol, STRK, that will conditionally convert into more shares of MSTR . The company has applied to list this new, series A perpetual strike preferred stock on NASDAQ. Once it debuts for trading, STRK buyers will be looking to earn dividends from MicroStrategy and meet the conditions for conversion into MSTR. Before conversion, the new supply of STRK will obviously compete with the demand for MSTR shares on an ongoing basis. Once STRK shareholders convert into MSTR, the supply of MSTR will mathematically increase. For 12 months, the supply of MSTR has increased rapidly from a cornucopia of financial engineering. One year ago, the market cap of MSTR was $8.8 billion. Today, it’s about 1,000% higher even though its share price is only 600% higher. That extra 400% delta...