Bankless · Wednesday, July 1, 2026
Jeff Dorman expresses concern over MicroStrategy's marketing of its preferred shares as a money market fund, calling it 'ridiculous' and potentially fraudulent. He argues that a prosecutor would have ample evidence to build a case against MicroStrategy based on marketing materials and actions.
“And quite frankly, they do a terrible, if not fraudulent job of explaining that, right? I mean, marketing the preferreds as a money market is, you know, ridiculous. You know, for those who have invested and distressed in credit markets for a long time, know that there's lots of companies out there that have, cumulative preferreds that they just shut off the dividend and they just sit there forever trading at 30 or 40 cents on the dollar with no real hopes of repayment.”
“This company is really pushing the edge in terms of marketing these products to retail. And, you know, as Jeff said, they are pitching this thing as a money market fund, and it is just definitely not a money market fund.”
“It's hard not to use the F word in that sense because, you know, again, the courts would ultimately decide that. But, I mean, there's definitely a lot of – let's put it this way. If you were a lawyer in charge of a prosecution against MSTR, you'd certainly have a lot of things to use as evidence to try to prove your case, right?”