Unchained · Wednesday, July 8, 2026
The market reaction to MicroStrategy's preferred stock is contrasted with that of SEDA, another variable rate preferred security. SEDA's more stable trading is presented as evidence that market panic, rather than fundamental issues, drove MicroStrategy's stock price down.
“Yeah, I think a good piece of evidence here is that SEDA, you know, the other main variable rate non-convertible preferred in the market, did not have nearly as violent of a reaction. And for a number of days when stretch was starting to trade down, SEDA was just trading at 100.”
“And yet the market was trading down for stretch. And so I think this really was just a situation of the shorts kind of latching onto an opportunity, um, and then people panicking, grabbing hold of a narrative and selling.”