Strategy compares the performance of MSTR and its preferred shares ahead of a vote

A comparison presented by Saylor

Michael Saylor released on October 24 a comparison of the performance of MSTR and Strategy's preferred shares, reports Bitcoin.com News. The measured period runs from June 26 to October 23. The common stock shows a rise of 77.4%, while the four preferred shares present different returns, dividends included for this comparison. This is a report on a chosen period, highlighted by the leader, and not an annual return guaranteed for new investors.

Strategy and MicroStrategy do not refer here to two companies pursuing competing strategies: MicroStrategy is the former name of the company. MSTR remains the symbol of its common stock. The STRC, STRD, STRK, and STRF series are distinct instruments issued by the same group, with their own terms. Comparing their performances therefore requires taking into account the distributions and rights attached to each share. A stronger rise in one does not allow concluding that it automatically has the same risk profile.

Share buybacks

The company devoted approximately $385.5 million to buying back STRC over the two weeks of October 5 to 18, according to operations described by Bitcoin.com News. Saylor considers that these interventions support the group's financing structure. This assessment belongs to him; it does not establish that the buybacks alone explain the observed performances. The price of the shares also depends on markets, the company's prospects, and the characteristics of the instruments involved.

During these two weeks, Strategy also acquired 250 then 267 bitcoins. These are hundreds of additional BTC, not 517,000 bitcoins. Total reserves and purchases during the period are two different measures. The buyback of STRC concerns Strategy's own preferred shares; it does not represent an increase in participation in an external company. These distinctions are necessary to read cash flows without adding operations of a different nature.

A vote on dividends

Shareholders must decide on October 28 on modifications allowing daily record dates and more frequent payments for the concerned preferred shares. Implementation depends on approval and the necessary dividend declarations. The project therefore does not mean that all MSTR holders already receive daily dividends. Terms and schedules differ by series, and the announced total obligations are not increased by the sole proposed frequency.

More frequent payment changes the schedule of received flows, without mechanically producing additional yield. Performance comparison also depends on the hypothesis of reinvesting or not the distributions. To assess the project, reference dates, the rights of each series, and the decisions actually adopted count more than a general formula on daily income. The vote remains a step to come; the past results presented by Saylor do not prejudge its outcome nor the future performance of Strategy's shares.