'Strife': MicroStrategy's New Tool for Buying Yet More Bitcoin — WSJ

By Vicky Ge HuangMicroStrategy, the bitcoin-buying machine, has come up with a new instrument for funding yet more purchases of the largest cryptocurrrency.The company, which recently rebranded as Strategy, said Tuesday it plans to sell $500 million worth of high-yielding securities known as "perpetual strife preferred stock." These will pay quarterly cash dividends totaling 10% a year.MicroStrategy has already bought up nearly half a million bitcoin, now worth about $41 billion, funded through debt and equity sales. Last week it unveiled a plan to sell up to $21 billion of instruments with a similar name: "perpetual strike preferred stock."But the "strife" and "strike" securities aren't quite the same. The strikes pay a lower 8% dividend and rank behind strife stock in the line for repayment; they can also be converted into common stock.Shares of MicroStrategy have fallen about 50% from a peak in November. Bitcoin traded around $81,000 Tuesday morning, down more than 20% since it touched an all-time high on Jan. 20.This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).