Michael Saylor: MicroStrategy seeks to provide investors with returns equivalent to 1.5 times that of Bitcoin

MicroStrategy's co-founder and chairman, Michael Saylor, recently stated at the Benchmark investor conference in Orlando that the company's potential issuance of perpetual preferred shares would be "the latest means for investors to leverage Bitcoin investments." He pointed out that the company's goal is to provide investors with "returns and volatility equivalent to 1.5 times Bitcoin."

According to an investor report by Benchmark stock analyst Mark Palmer, Saylor said MicroStrategy's decisions on when and how much securities are issued and Bitcoins are purchased involve both programmatic factors and opportunistic elements. He noted that Bitcoin and other capital markets each have their unique "moods," which he and his team pay attention to respond accordingly.

Palmer wrote in a recent report: “We believe any preferred shares issued by the company may possess these two characteristics simultaneously: convertible into common shares, providing preferred shareholders with uncommon volatility options. Essentially, these securities will offer preferred shareholders a unique proposition: an embedded unlimited bullish option of a company whose value is primarily tied to highly volatile cryptocurrency.”

Saylor also mentioned President-elect Trump and his new cabinet nominees align ideologically with cryptocurrencies. He also suggested that the controversial Staff Accounting Bulletin 121 (abbreviated as SAB 121) could be abolished within Trump’s first week in office. Benchmark rates MSTR stocks as "buy" with a target price of $650 USD per share. As of press time, this stock has risen by 5.39% to $360.62 USD per share.