MicroStrategy’s preferred shares dropped more than 20% over a few weeks. Then an 8-K reversed the mood, handingthe company buyback authority over both its preferred and common stock for the first time. The headlines focused on a small Bitcoin sale; the more important story was buried underneath it.

Full analysis: https://open.substack.com/pub/fixedfloating/p/stretch-is-not-cash-the-lesson-from?r=718tew&utm_campaign=post&utm_medium=web

Josef Pschorn speaks with Mark Palmer of Benchmark-StoneX, the first Wall Street analyst to cover Strategy, about how the company’s capital structure actually holds together and what genuinely changed.

Key takeaways:

• The 8-K gave Strategy “two-way capital management” for the first time — the ability to buy backpreferred and common stock, not just issue new securities to buy Bitcoin.
• Perpetual preferred stock behaves like near-permanent capital: no maturity wall, not dilutive while outstanding, and tax-advantaged as return of capital for as long as the company posts no positive net income.
• The recent Stretch selloff was driven by forced deleveraging among investors who had levered the position, not by any change in the Bitcoin backing the instrument.
• A common misconception — that a falling Stretch price increases Strategy’s cash dividend obligation — is simply wrong; the dollar obligation is fixed regardless ofprice.
• Strategy’s $6.75 billion convertible debt carries a blended coupon of just 0.52%, with the real risk being the 2028–2032 maturity wall rather thaninterest expense.

Guest links: https://www.benchmarkcompany.com/leaders/1601/

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Recorded: 01.07.2026