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2025-02-17 03:49:47 UTC

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Does that make sense?
It's not tax efficient so would only be worth consideration if you're older and value cash flow over appreciation, if you can only buy preferred stock and can't buy common stock MSTR or Bitcoin, or want to get cute in a tax advantaged account and ibit/MSTR aren't unique enough

2025-02-17 03:47:27 UTC

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Sorry, it's $1000 not $3000. That's because you can convert each STRK share into 0.1 shares of MSTR common stock whenever you want. Because par value is $100, MSTR common stock would need to get to $1000 for that to become worthwhile.
So imagine a number line from 0->infinity and that's MSTR stock price. There's a dividing line at $1000. Below that, you get $8 annually for every share of STRK you own. Above the $1000 MSTR stock price, it becomes worth converting STRK to MSTR stock
So it's similar to a perpetual bond and a $1000 call option without an expiration date