UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
(Rule 13d-102)
Information Statement Pursuant to Rules 13d-1 and 13d-2
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
MicroStrategy Incorporated
-------------------------------------------------------------------------------
(Name of Issuer)
Common Stock - Class A
-------------------------------------------------------------------------------
(Title of Class of Securities)
594972101
-------------------------------------------------------------------------------
(CUSIP Number)
December 31, 2001
-------------------------------------------------------------------------------
Date of Event Which Requires Filing of the Statement
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[_] Rule 13d-1(b)
[X] Rule 13d-1(c)
[_] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
Page 1 of 17
------------------------ ------------------------
Cusip No. 594972101 13G Page 2 of 17 Pages
------------------------ ------------------------
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name HFTP Investment, L.L.C.
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware limited liability company
U.S.A.
--------------------------------------------------------------------------------
5. SOLE VOTING POWER
NUMBER OF 0
----------------------------------------------
SHARES 6. SHARED VOTING POWER
BENEFICIALLY 650 shares of Series A Convertible
Preferred Stock (convertible into
OWNED BY 2,108,336 shares of Class A Common
Stock)/1/
EACH 530 shares of Series B Convertible
Preferred Stock (convertible into
REPORTING 424,000 shares of Class A Common
Stock)/2/
PERSON ----------------------------------------------
WITH 7. SOLE DISPOSITIVE POWER
0
----------------------------------------------
8. SHARED DISPOSITIVE POWER
See Row 6 above.
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
See Row 6 above.
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[_]
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
Approximately 5.5% as of December 31, 2001. (Based on 43,192,074
shares of Class A Common Stock issued and outstanding as of November
1, 2001, plus the shares of Class A Common Stock issuable upon the
conversion of the Series A Convertible Preferred Stock and Series B
Convertible Preferred Stock referred to in Row 6 above.)
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
OO
--------------------------------------------------------------------------------
/1// The Series A Convertible Preferred Stock also accrues dividends at a
-
rate of 7.0% per annum, payable in cash or Class A Common Stock, at the
discretion of the Issuer, on the first day of each calendar quarter. See
Footnote 3 in Item 4.
/2// The Series B Convertible Preferred Stock also accrues dividends at a rate
-
of 12.5% per annum, payable in cash or Class A Common Stock, at the discretion
of the Issuer, on the first day of each calendar quarter. See Footnote 3 in Item
4.
Page 2 of 17
------------------------ ------------------------
Cusip No. 594972101 13G Page 3 of 17 Pages
------------------------ ------------------------
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Promethean Asset Management, L.L.C.
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware limited liability company
U.S.A.
--------------------------------------------------------------------------------
5. SOLE VOTING POWER
NUMBER OF 0
----------------------------------------------
SHARES 6. SHARED VOTING POWER
BENEFICIALLY 650 shares of Series A Convertible
Preferred Stock (convertible into
OWNED BY 2,108,336 shares of Class A Common
Stock)/1/
EACH 530 shares of Series B Convertible
Preferred Stock (convertible into
REPORTING 424,000 shares of Class A Common
Stock)/2/
PERSON ----------------------------------------------
WITH 7. SOLE DISPOSITIVE POWER
0
----------------------------------------------
8. SHARED DISPOSITIVE POWER
See Row 6 above.
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
See Row 6 above.
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[_]
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
Approximately 5.5% as of December 31, 2001. (Based on 43,192,074
shares of Class A Common Stock issued and outstanding as of November
1, 2001, plus the shares of Class A Common Stock issuable upon the
conversion of the Series A Convertible Preferred Stock and Series B
Convertible Preferred Stock referred to in Row 6 above.)
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
OO; HC
--------------------------------------------------------------------------------
/1// The Series A Convertible Preferred Stock also accrues dividends at a
-
rate of 7.0% per annum, payable in cash or Class A Common Stock, at the
discretion of the Issuer, on the first day of each calendar quarter. See
Footnote 3 in Item 4.
/2// The Series B Convertible Preferred Stock also accrues dividends at a rate
-
of 12.5% per annum, payable in cash or Class A Common Stock, at the discretion
of the Issuer, on the first day of each calendar quarter. See Footnote 3 in Item
4.
Page 3 of 17
------------------------ ------------------------
Cusip No. 594972101 13G Page 4 of 17 Pages
------------------------ ------------------------
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name James F. O'Brien, Jr.
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
U.S. Citizen
U.S.A.
--------------------------------------------------------------------------------
5. SOLE VOTING POWER
NUMBER OF 0
----------------------------------------------
SHARES 6. SHARED VOTING POWER
BENEFICIALLY 650 shares of Series A Convertible
Preferred Stock (convertible into
OWNED BY 2,108,336 shares of Class A Common
Stock)/1/
EACH 530 shares of Series B Convertible
Preferred Stock (convertible into
REPORTING 424,000 shares of Class A Common
Stock)/2/
PERSON ----------------------------------------------
WITH 7. SOLE DISPOSITIVE POWER
0
----------------------------------------------
8. SHARED DISPOSITIVE POWER
See Row 6 above.
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
See Row 6 above.
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[_]
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
Approximately 5.5% as of December 31, 2001. (Based on 43,192,074
shares of Class A Common Stock issued and outstanding as of November
1, 2001, plus the shares of Class A Common Stock issuable upon the
conversion of the Series A Convertible Preferred Stock and Series B
Convertible Preferred Stock referred to in Row 6 above.)
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
IN; HC
--------------------------------------------------------------------------------
/1// The Series A Convertible Preferred Stock also accrues dividends at a
-
rate of 7.0% per annum, payable in cash or Class A Common Stock, at the
discretion of the Issuer, on the first day of each calendar quarter. See
Footnote 3 in Item 4.
/2// The Series B Convertible Preferred Stock also accrues dividends at a rate
-
of 12.5% per annum, payable in cash or Class A Common Stock, at the discretion
of the Issuer, on the first day of each calendar quarter. See Footnote 3 in Item
4.
Page 4 of 17
------------------------ ------------------------
Cusip No. 594972101 13G Page 5 of 17 Pages
------------------------ ------------------------
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Promethean Investment Group, L.L.C.
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)
[X]
(b)
[_]
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
New York limited liability company
U.S.A.
--------------------------------------------------------------------------------
5. SOLE VOTING POWER
NUMBER OF 0
----------------------------------------------
SHARES 6. SHARED VOTING POWER
BENEFICIALLY 650 shares of Series A Convertible
OWNED BY Preferred Stock (convertible into
EACH 2,108,336 shares of Class A Common
REPORTING Stock)/1/
PERSON 530 shares of Series B Convertible
WITH Preferred Stock (convertible into
424,000 shares of Class A Common
Stock)/2/
----------------------------------------------
7. SOLE DISPOSITIVE POWER
0
----------------------------------------------
8. SHARED DISPOSITIVE POWER
See Row 6 above.
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
See Row 6 above.
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [_]
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
Approximately 5.5% as of December 31, 2001. (Based on 43,192,074
shares of Class A Common Stock issued and outstanding as of November
1, 2001, plus the shares of Class A Common Stock issuable upon the
conversion of the Series A Convertible Preferred Stock and Series B
Convertible Preferred Stock referred to in Row 6 above.)
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
OO; HC
--------------------------------------------------------------------------------
/1/ The Series A Convertible Preferred Stock also accrues dividends at a
-
rate of 7.0% per annum, payable in cash or Class A Common Stock, at the
discretion of the Issuer, on the first day of each calendar quarter. See
Footnote 3 in Item 4.
/2/The Series B Convertible Preferred Stock also accrues dividends at a rate of
-
12.5% per annum, payable in cash or Class A Common Stock, at the discretion of
the Issuer, on the first day of each calendar quarter. See Footnote 3 in Item 4.
Page 5 of 17
------------------------ ------------------------
Cusip No. 594972101 13G Page 6 of 17 Pages
------------------------ ------------------------
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name HFTP Managers LLC.
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)
[X]
(b)
[_]
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware limited liability company
U.S.A.
--------------------------------------------------------------------------------
5. SOLE VOTING POWER
NUMBER OF 0
----------------------------------------------
SHARES 6. SHARED VOTING POWER
BENEFICIALLY 650 shares of Series A Convertible
OWNED BY Preferred Stock (convertible into
EACH 2,108,336 shares of Class A Common
REPORTING Stock)/1/
PERSON 530 shares of Series B Convertible
WITH Preferred Stock (convertible into
424,000 shares of Class A Common
Stock)/2/
----------------------------------------------
7. SOLE DISPOSITIVE POWER
0
----------------------------------------------
8. SHARED DISPOSITIVE POWER
See Row 6 above.
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
See Row 6 above.
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [_]
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
Approximately 5.5% as of December 31, 2001. (Based on 43,192,074
shares of Class A Common Stock issued and outstanding as of November
1, 2001, plus the shares of Class A Common Stock issuable upon the
conversion of the Series A Convertible Preferred Stock and Series B
Convertible Preferred Stock referred to in Row 6 above.)
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
OO; HC
--------------------------------------------------------------------------------
/1/ The Series A Convertible Preferred Stock also accrues dividends at a
-
rate of 7.0% per annum, payable in cash or Class A Common Stock, at the
discretion of the Issuer, on the first day of each calendar quarter. See
Footnote 3 in Item 4.
/2/The Series B Convertible Preferred Stock also accrues dividends at a rate of
-
12.5% per annum, payable in cash or Class A Common Stock, at the discretion of
the Issuer, on the first day of each calendar quarter. See Footnote 3 in Item 4.
Page 6 of 17
------------------------ ------------------------
Cusip No. 594972101 13G Page 7 of 17 Pages
------------------------ ------------------------
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Heracles Fund
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)
[X]
(b)
[_]
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands corporation
U.S.A.
--------------------------------------------------------------------------------
5. SOLE VOTING POWER
NUMBER OF 0
----------------------------------------------
SHARES 6. SHARED VOTING POWER
BENEFICIALLY 650 shares of Series A Convertible
OWNED BY Preferred Stock (convertible into
EACH 2,108,336 shares of Class A Common
REPORTING Stock)/1/
PERSON 530 shares of Series B Convertible
WITH Preferred Stock (convertible into
424,000 shares of Class A Common
Stock)/2/
----------------------------------------------
7. SOLE DISPOSITIVE POWER
0
----------------------------------------------
8. SHARED DISPOSITIVE POWER
See Row 6 above.
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
See Row 6 above.
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
CERTAIN SHARES* [_]
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
Approximately 5.5% as of December 31, 2001. (Based on 43,192,074
shares of Class A Common Stock issued and outstanding as of November
1, 2001, plus the shares of Class A Common Stock issuable upon the
conversion of the Series A Convertible Preferred Stock and Series B
Convertible Preferred Stock referred to in Row 6 above.)
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
OO; HC
--------------------------------------------------------------------------------
/1/ The Series A Convertible Preferred Stock also accrues dividends at a
-
rate of 7.0% per annum, payable in cash or Class A Common Stock, at the
discretion of the Issuer, on the first day of each calendar quarter. See
Footnote 3 in Item 4.
/2/The Series B Convertible Preferred Stock also accrues dividends at a rate of
-
12.5% per annum, payable in cash or Class A Common Stock, at the discretion of
the Issuer, on the first day of each calendar quarter. See Footnote 3 in Item 4.
Page 7 of 17
------------------------ -------------------------------
CUSIP NO. 594972101 13G Page 8 of 17 Pages
------------------------ -------------------------------
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Promethean Managers LLC
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware limited liability company
U.S.A.
--------------------------------------------------------------------------------
5. SOLE VOTING POWER
NUMBER OF 0
---------------------------------------
SHARES
6. SHARED VOTING POWER
BENEFICIALLY
650 shares of Series A
OWNED BY Convertible Preferred Stock
(convertible into 2,108,336
EACH shares of Class A Common
Stock)/1/
REPORTING 530 shares of Series B
Convertible Preferred Stock
(convertible into 424,000
PERSON shares of Class A Common
Stock)/2/
WITH ---------------------------------------
7. SOLE DISPOSITIVE POWER
0
---------------------------------------
8. SHARED DISPOSITIVE POWER
See Row 6 above.
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
See Row 6 above.
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES* [_]
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
Approximately 5.5% as of December 31, 2001. (Based on 43,192,074
shares of Class A Common Stock issued and outstanding as of November
1, 2001, plus the shares of Class A Common Stock issuable upon the
conversion of the Series A Convertible Preferred Stock and Series B
Convertible Preferred Stock referred to in Row 6 above.)
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
OO; HC
--------------------------------------------------------------------------------
/1// The Series A Convertible Preferred Stock also accrues dividends at a
-
rate of 7.0% per annum, payable in cash or Class A Common Stock, at the
discretion of the Issuer, on the first day of each calendar quarter. See
Footnote 3 in Item 4.
/2// The Series B Convertible Preferred Stock also accrues dividends at a rate
-
of 12.5% per annum, payable in cash or Class A Common Stock, at the discretion
of the Issuer, on the first day of each calendar quarter. See Footnote 3 in Item
4.
Page 8 of 17
------------------------ -------------------------------
CUSIP NO. 594972101 13G Page 9 of 17 Pages
------------------------ -------------------------------
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Themis Managers LLC
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware limited liability company
U.S.A.
--------------------------------------------------------------------------------
5. SOLE VOTING POWER
NUMBER OF 0
---------------------------------------
SHARES
6. SHARED VOTING POWER
BENEFICIALLY
650 shares of Series A
OWNED BY Convertible Preferred Stock
(convertible into 2,108,336
EACH shares of Class A Common
Stock)/1/
REPORTING 530 shares of Series B
Convertible Preferred Stock
(convertible into 424,000
PERSON shares of Class A Common
Stock)/2/
WITH ---------------------------------------
7. SOLE DISPOSITIVE POWER
0
---------------------------------------
8. SHARED DISPOSITIVE POWER
See Row 6 above.
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
See Row 6 above.
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES* [_]
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
Approximately 5.5% as of December 31, 2001. (Based on 43,192,074
shares of Class A Common Stock issued and outstanding as of November
1, 2001, plus the shares of Class A Common Stock issuable upon the
conversion of the Series A Convertible Preferred Stock and Series B
Convertible Preferred Stock referred to in Row 6 above.)
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
OO; HC
--------------------------------------------------------------------------------
/1// The Series A Convertible Preferred Stock also accrues dividends at a
-
rate of 7.0% per annum, payable in cash or Class A Common Stock, at the
discretion of the Issuer, on the first day of each calendar quarter. See
Footnote 3 in Item 4.
/2// The Series B Convertible Preferred Stock also accrues dividends at a rate
-
of 12.5% per annum, payable in cash or Class A Common Stock, at the discretion
of the Issuer, on the first day of each calendar quarter. See Footnote 3 in Item
4.
Page 9 of 17
------------------------ -------------------------------
CUSIP NO. 594972101 13G Page 10 of 17 Pages
------------------------ -------------------------------
--------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Themis Partners L.P.
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [_]
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware limited partnership
U.S.A.
--------------------------------------------------------------------------------
5. SOLE VOTING POWER
NUMBER OF 0
---------------------------------------
SHARES
6. SHARED VOTING POWER
BENEFICIALLY
650 shares of Series A
OWNED BY Convertible Preferred Stock
(convertible into 2,108,336
EACH shares of Class A Common
Stock)/1/
REPORTING 530 shares of Series B
Convertible Preferred Stock
(convertible into 424,000
PERSON shares of Class A Common
Stock)/2/
WITH ---------------------------------------
7. SOLE DISPOSITIVE POWER
0
---------------------------------------
8. SHARED DISPOSITIVE POWER
See Row 6 above.
--------------------------------------------------------------------------------
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
See Row 6 above.
--------------------------------------------------------------------------------
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES* [_]
--------------------------------------------------------------------------------
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
Approximately 5.5% as of December 31, 2001. (Based on 43,192,074
shares of Class A Common Stock issued and outstanding as of November
1, 2001, plus the shares of Class A Common Stock issuable upon the
conversion of the Series A Convertible Preferred Stock and Series B
Convertible Preferred Stock referred to in Row 6 above.)
--------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
PN; HC
--------------------------------------------------------------------------------
/1// The Series A Convertible Preferred Stock also accrues dividends at a
-
rate of 7.0% per annum, payable in cash or Class A Common Stock, at the
discretion of the Issuer, on the first day of each calendar quarter. See
Footnote 3 in Item 4.
/2// The Series B Convertible Preferred Stock also accrues dividends at a rate
-
of 12.5% per annum, payable in cash or Class A Common Stock, at the discretion
of the Issuer, on the first day of each calendar quarter. See Footnote 3 in Item
4.
Page 10 of 17
-------------------- ---------------------
CUSIP NO. 594972101 13G Page 11 of 17 Pages
-------------------- ---------------------
Item 1(a) Name of Issuer: MicroStrategy Incorporated
1(b) Address of Issuer's Principal Executive Offices:
8000 Towers Crescent Drive
Vienna, Virginia 22182
Item 2(a) Name of Person Filing
Item 2(b) Address of Principal Business Office
Item 2(c) Citizenship
HFTP Investment L.L.C.
750 Lexington Avenue, 22/nd/ Floor
New York, New York 10022
Delaware limited liability company
Promethean Asset Management, L.L.C.
750 Lexington Avenue, 22/nd/ Floor
New York, New York 10022
Delaware limited liability company
James F. O'Brien, Jr.
750 Lexington Avenue, 22/nd/ Floor
New York, New York 10022
U.S. citizen
Promethean Investment Group, L.L.C.
750 Lexington Avenue, 22/nd/ Floor
New York, New York 10022
New York limited liability company
HFTP Managers LLC
750 Lexington Avenue, 22/nd/ Floor
New York, New York 10022
Delaware limited liability company
Heracles Fund
c/o Promethean Asset Management, L.L.C.
750 Lexington Avenue, 22/nd/ Floor
New York, New York 10022
Cayman Island corporation
Promethean Managers LLC
750 Lexington Avenue, 22/nd/ Floor
New York, New York 10022
Delaware limited liability company
Page 11 of 17
--------------------- ----------------------
CUSIP NO. 594972101 13G Page 12 of 17 Pages
--------------------- ----------------------
Themis Managers LLC
750 Lexington Avenue, 22/nd/ Floor
New York, New York 10022
Delaware limited liability company
Themis Partners L.P.
750 Lexington Avenue, 22/nd/ Floor
New York, New York 10022
Delaware limited partnership
2(d) Title of Class of Securities:
Class A Common Stock, par value $0.001 per share
2(e) CUSIP Number: 594972101.
Item 3 If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b) or
(c), check whether the person filing is a:
(a) [__] Broker or dealer registered under Section 15 of the
Exchange Act;
(b) [__] Bank as defined in Section 3(a)(6) of the Exchange Act;
(c) [__] Insurance company as defined in Section 3(a)(19) of the
Exchange Act;
(d) [__] Investment company registered under Section 8 of the
Investment Company Act;
(e) [__] An investment adviser in accordance with Rule
13d-1(b)(1)(ii)(E);
(f) [__] An employee benefit plan or endowment fund in accordance
with Rule 13d-1(b)(1)(ii)(F);
(g) [__] A parent holding company or control person in accordance
with Rule 13d-1(b)(ii)(G);
(h) [__] A savings association as defined in Section 3(b) of the
Federal Deposit Insurance Act;
(i) [__] A church plan that is excluded from the definition of an
investment company under Section 3(c)(14) of the
Investment Company Act;
(j) [__] Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
Page 12 of 17
--------------------- --------------------
CUSIP NO. 594972101 13G Page 13 of 17 Pages
--------------------- --------------------
If this statement is filed pursuant to Rule 13d-1(c), check
this box. [X]
Item 4 Ownership:
HFTP INVESTMENT L.L.C.
PROMETHEAN ASSET MANAGEMENT, L.L.C.
JAMES F. O'BRIEN, JR.
PROMETHEAN INVESTMENT GROUP, L.L.C.
HFTP MANAGERS LLC
HERACLES FUND
PROMETHEAN MANAGERS LLC
THEMIS MANAGERS LLC
THEMIS PARTNERS L.P.
(a) Amount beneficially owned:
650 shares of Series A Convertible Preferred Stock (convertible into 2,108,336
shares of Class A Common Stock)/1/
530 shares of Series B Convertible Preferred Stock (convertible into 424,000
shares of Class A Common Stock)/2/
(b) Percent of Class:
Approximately 5.5% as of December 31, 2001. (Based on 43,192,074 shares of Class
A Common Stock issued and outstanding as of November 1, 2001, plus the shares of
Class A Common Stock issuable upon the conversion of the Series A Convertible
Preferred Stock and Series B Convertible Preferred Stock referred to in item (a)
above.)
/1/ The series A Convertible Preferred Stock also accrues dividends at a rate of
7.0% per annum, payable in cash or Class A Common Stock, at the discretion of
the Issuer, on the first day of each calendar quarter. See Footnote 3 an Item 4.
/2/ The Series B Convertible Preferred Stock also accrues dividends at a rate of
12.5% per annum, payable in cash or Class A Common Stock, at the discretion of
the Issuer, on the first day of each calendar quarter. See Footnote 3 an Item 4.
Page 13 of 17
-------------------- --------------------
CUSIP NO. 594972101 13G Page 14 of 17 Pages
-------------------- --------------------
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote:
0
(ii) shared power to vote or to direct the vote:
See item (a) above.
(iii) sole power to dispose or to direct the disposition of:
0
(iv) shared power to dispose or to direct the disposition of:
See item (a) above.
/3/The securities reported herein include securities that the Reporting Persons
may acquire in the future through the conversion of (i) 650 shares of the Series
A Convertible Preferred Stock (the "Series A Preferred Shares"), which may be
converted by the Reporting Persons at any time prior to and including June 19,
2002, subject to extension under certain circumstances as described below (the
"Series A Maturity Date"), into shares of the Company's Class A Common Stock
(the "Common Stock") at the conversion price described below and (ii) 530 shares
of the Series B Convertible Preferred Stock (the "Series B Preferred Shares"),
which may be converted by the Reporting Persons at any time prior to June 14,
2004 (the "Series B Maturity Date"), into shares of Common Stock at the
conversion price of $12.50 (subject to adjustment to prevent dilution). The
number of shares of Common Stock into which the Series A Preferred Shares are
convertible as December 31, 2001 is based on a conversion price of $3.083. The
Series A Preferred Shares were issued on June 19, 2000, and the Series B
Preferred Shares were issued on June 14, 2001. At the election of the Company,
subject to certain limitations, the Series A Maturity Date may be extended until
June 19, 2004 (subject to further extension under certain circumstances). As of
December 31, 2001, the conversion price of the Series A Preferred Shares was
$3.083.
The Conversion Price for the Series A Preferred Shares (the "Series A Conversion
Price") initially was $33.3854 (subject to adjustment to prevent dilution). The
Series A Conversion Price is subject to an annual adjustment. If the average of
the weighted average price (as reported by Bloomberg) of the Common Stock on the
10 trading days following June 19, 2001, June 19, 2002, June 19, 2003 or June
19, 2004 (each, with respect to each such date, the "Market Price") is less than
the Series A Conversion Price in effect immediately prior to such date, then on
and after the 11th trading day following each such date the Series A Conversion
Price will be equal to the Market Price with respect to such date, subject to
further adjustment. As a result, if the weighted average price of the Common
Stock fluctuates, the number of shares of Common Stock which
Page 14 of 17
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CUSIP NO. 594972101 13G Page 15 of 17 Pages
-------------------- --------------------
holders of the Series A Preferred Shares may be deemed to beneficially own may
fluctuate without any action taken by the holders of the Series A Preferred
Shares.
On the Series A Maturity Date, the Company shall either redeem the outstanding
Series A Preferred Shares or convert the Series A Preferred Shares into shares
of Common Stock at a conversion price equal to 95% of the Common Stock's average
"weighted average price" (as reported by Bloomberg) for the 30 trading days
immediately preceding the Series A Maturity Date. As a result, as the weighted
average price of the Common Stock fluctuates, the number of shares of Common
Stock which holders of the Series A Preferred Shares may be deemed to
beneficially own will change at the Series A Maturity Date without any action
taken by the holders of the Series A Preferred Shares.
The Series A Preferred Shares accrue dividends at the rate of 7% per annum from
June 19, 2000, payable in cash or Common Stock at the option of the Company
(with certain exceptions) quarterly, beginning on the earlier of December 18,
2000 and the date that is 10 days after a registration statement covering the
Common Stock issuable upon conversion of the Series A Preferred Shares is
declared effective by the Securities and Exchange Commission. If the Company
meets the necessary requirements and elects to pay dividends in shares of Common
Stock, the conversion price for such dividends would be equal to 95% of the
arithmetic average of the weighted average prices of the Common Stock on its
principal market during the five (5) consecutive trading days immediately
preceding the dividend date. As of the date of this Schedule 13G, the Series A
Preferred Shares had accrued dividends of approximately $114,684.93.
On the Series B Maturity Date, the Company shall either redeem the outstanding
Series B Preferred Shares or convert the Series B Preferred Shares into shares
of Common Stock at a conversion price equal to 95% of the Common Stock's average
"weighted average price" (as reported by Bloomberg) for the 30 trading days
immediately preceding the Series B Maturity Date. As a result, as the weighted
average price of the Common Stock fluctuates, the number of shares of Common
Stock which holders of the Series B Preferred Shares may be deemed to
beneficially own will change at the Series B Maturity Date without any action
taken by the holders of the Series B Preferred Shares.
The Series B Preferred Shares accrue dividends at the rate of 12.5% per annum
from June 14, 2001, payable in cash or Common Stock at the option of the Company
(with certain exceptions) on the first day of each calendar quarter. If the
Company meets the necessary requirements and elects to pay dividends in shares
of Common Stock, the conversion price for such dividends would be equal to 95%
of the arithmetic average of the weighted average prices of the Common Stock on
its principal market during the five (5) consecutive trading days immediately
preceding the dividend date. As of December 31, 2001, the Series B Preferred
Shares had accrued dividends of approximately $166,986.30.
Pursuant to the terms of the Preferred Shares, the Reporting Persons cannot be
"beneficial owners" of more than 9.99% of the Common Stock within the meaning of
Rule 13d-1 of the Securities Exchange Act of 1934.
Page 15 of 17
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CUSIP NO. 594972101 13G Page 16 of 17 Pages
--------------------- ---------------------
Item 5 Ownership of Five Percent or Less of a Class:
Not Applicable.
Item 6 Ownership of More than Five Percent on Behalf of Another Person:
Not Applicable.
Item 7 Identification and Classification of the Subsidiary which Acquired the
Security Being Reported on by the Parent Holding Company:
See Item 2 above.
Item 8 Identification and Classification of Members of the Group:
Not Applicable.
Item 9 Notice of Dissolution of Group:
Not Applicable.
Page 16 of 17
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CUSIP 594972101 13G Page 17 of 17 Pages
----------------- ---------------------
Item 10 Certification:
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were not acquired and are not held for
the purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having that purpose or effect.
After reasonable inquiry and to the best of its knowledge and belief,
the undersigned certify that the information set forth in this statement is
true, complete and correct.
Dated this 13th day of February, 2002
/s/ James F. O'Brien, Jr. HERACLES FUND
-----------------------------------------
James F. O'Brien, Jr.
By:Promethean Asset Management, L.L.C.
HFTP INVESTMENT L.L.C. Its: Investment Advisor
By: Promethean Asset Management, L.L.C. By: /s/ James F. O'Brien, Jr.
Its: Investment Manager ---------------------------------------
Name: James F. O'Brien, Jr.
Title: Managing Member
By: /s/ James F. O'Brien, Jr.
--------------------------------------
Name: James F. O'Brien, Jr. PROMETHEAN MANAGERS LLC
Title: Managing Member
By: /s/ James F. O'Brien, Jr.
-----------------------------------
PROMETHEAN ASSET Name: James F. O'Brien, Jr.
MANAGEMENT, L.L.C. Title: Managing Member
By: /s/ James F. O'Brien, Jr.
-------------------------------------
Name: James F. O'Brien, Jr. THEMIS MANAGERS LLC
Title: Managing Member By: Promethean Managers LLC
Its: Managing Member
PROMETHEAN INVESTMENT
GROUP, L.L.C. By: /s/ James F. O'Brien, Jr.
------------------------------------
Name: James F. O'Brien, Jr.
By: /s/ James F. O'Brien, Jr. Title: Managing Member
-------------------------------------
Name: James F. O'Brien, Jr.
Title: Managing Member
THEMIS PARTNERS L.P.
HFTP MANAGERS LLC By: Themis Managers LLC
Its: General Partner
By: Promethean Managers LLC By: Promethean Managers LLC
Its: Managing Member Its: Managing Member
By: /s/ James F. O'Brien, Jr. By: /s/ James F. O'Brien, Jr.
-------------------------------------- ------------------------------------
Name: James F. O'Brien, Jr. Name: James F. O'Brien, Jr.
Title: Managing Member Title: Managing Member
Page 17 of 17