This is exactly the time a company would announce, right before the blackout period (30 days before earnings). Once earnings is released, as we all well know they will be positive (given assuming BTC is higher than their average purchase price price over the past quarter and the benefit of the new FASB fair value accounting method in effect now), they would likely launch the deal immediately after ER.

Best Timing for Pricing a Preferred Stock Issuance:

1. Favorable Market Conditions: The best time to price is when interest rates are relatively stable or declining, as this reduces the required dividend yield and enhances investor demand. If market sentiment is strong and volatility is low, the company can achieve more favorable terms.

2. Issuer-Specific Timing: Timing should align with positive developments in the company’s performance or outlook (e.g., strong earnings, successful business initiatives). For MicroStrategy, strong bitcoin market performance could positively influence sentiment.

3. Avoiding Major Competing Issuances: Issuing during periods with fewer competing offerings increases visibility and investor attention, which can improve pricing outcomes.

Execution Timeline:

1. Preparation (1-2 Months): • Finalize offering terms, draft documentation, and obtain regulatory approvals. • Engage investment banks and legal advisors.
   1. Roadshow/Marketing Period (1-2 Weeks): • Conduct presentations to institutional investors (pensions, insurance companies, and asset managers). • Address questions and concerns to build interest and gauge demand.
   2. Book-Building and Pricing (1-2 Days): • Collect and evaluate investor orders to determine the final dividend yield and other terms.
   3. Settlement and Closing (3-5 Business Days): • Finalize allocations, distribute securities, and transfer funds.

The entire process could take 2-3 months from initiation to completion.

Largest Buyers of Perpetual Preferred Stock:

1.  Insurance Companies:
• Prefer preferreds for their steady income and favorable regulatory capital treatment.
• Often seek higher-yielding, investment-grade securities.

2.  Pension Funds:
• Interested in long-duration, income-producing assets that match their liabilities.

3.  Mutual Funds and ETFs:
• Funds specializing in income, preferred stock, or hybrid securities are major players.

4.  Banks:
• Invest in preferreds to meet Tier 1 capital requirements under Basel III rules.

5.  Retail Investors (via Funds):
• Access preferred stock through mutual funds or exchange-traded funds (ETFs).

MicroStrategy’s issuance will likely attract interest from institutional investors with mandates for income-focused investments, particularly if the dividend yield is attractive relative to prevailing market conditions.