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. 2)*
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 19
--------------------- --------------------
CUSIP NO. 594972101 13G Page 2 of 19 Pages
--------------------- --------------------
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Citadel Limited Partnership
--------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
--------------------------------------------------------------------------------
SEC USE ONLY
3
--------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Illinois limited partnership
U.S.A.
--------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -------------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 6
EACH 1,192,260 shares of Class A Common Stock
REPORTING 1,590 shares of Series B Convertible Preferred Stock
PERSON (convertible into 567,001 shares of Class A Common
WITH Stock)/1//2/
1,590 shares of Series C Convertible Preferred Stock
(convertible into 0 shares of Class A Common
Stock)/1//2/
1,451.1 shares of Series D Convertible Preferred Stock
(convertible into 2,902,200 shares of Class A Common
Stock)/1//2/
-------------------------------------------------------------
SOLE DISPOSITIVE POWER
7
0
-------------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*/2/
10
[X]
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 9.99% as of December 31, 2001./2/ (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 B, Series C and Series D Convertible Preferred Stock
referred to in Row 6 above.)
--------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
12
PN; HC
--------------------------------------------------------------------------------
/1/ The Series B Convertible Preferred Stock and Series C Convertible Preferred
Stock also accrue 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.
/2/ Pursuant to the terms of the Series B Convertible Preferred Stock, Series C
Convertible Preferred Stock, and Series D Convertible Preferred Stock, the
Reporting Person can not be the "beneficial owner" of more than 9.99% of the
Class A Common Stock within the meaning of Rule 13d-1 of the Securities Exchange
Act of 1934.
Page 2 of 19
--------------------- --------------------
CUSIP NO. 594972101 13G Page 3 of 19 Pages
--------------------- --------------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name GLB Partners, L.P.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Delaware limited partnership
U.S.A.
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 6
EACH 1,192,260 shares of Class A Common Stock
REPORTING 1,590 shares of Series B Convertible Preferred Stock
PERSON (convertible into 567,001 shares of Class A Common
WITH Stock)/1//2/
1,590 shares of Series C Convertible Preferred Stock
(convertible into 0 shares of Class A Common
Stock)/1//2/
1,451.1 shares of Series D Convertible Preferred Stock
(convertible into 2,902,200 shares of Class A Common
Stock)/1//2/
-----------------------------------------------------------
SOLE DISPOSITIVE POWER
7
0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*/2/
10
[X]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 9.99% as of December 31, 2001./2/ (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 B, Series C and Series D Convertible Preferred Stock
referred to in Row 6 above.)
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
12
PN; HC
------------------------------------------------------------------------------
/1/ The Series B Convertible Preferred Stock and Series C Convertible Preferred
Stock also accrue 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.
/2/ Pursuant to the terms of the Series B Convertible Preferred Stock, Series C
Convertible Preferred Stock, and Series D Convertible Preferred Stock, the
Reporting Person can not be the "beneficial owner" of more than 9.99% of the
Class A Common Stock within the meaning of Rule 13d-1 of the Securities Exchange
Act of 1934.
Page 3 of 19
--------------------- --------------------
CUSIP NO. 594972101 13G Page 4 of 19 Pages
--------------------- --------------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Citadel Investment Group, L.L.C.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Delaware limited liability company
U.S.A.
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 6
EACH 1,192,260 shares of Class A Common Stock
REPORTING 1,590 shares of Series B Convertible Preferred Stock
PERSON (convertible into 567,001 shares of Class A Common
WITH Stock)/1//2/
1,590 shares of Series C Convertible Preferred Stock
(convertible into 0 shares of Class A Common
Stock)/1//2/
1,451.1 shares of Series D Convertible Preferred Stock
(convertible into 2,902,200 shares of Class A Common
Stock)/1//2/
-----------------------------------------------------------
SOLE DISPOSITIVE POWER
7
0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*/2/
10
[X]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 9.99% as of December 31, 2001./2/ (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 B, Series C and Series D Convertible Preferred Stock
referred to in Row 6 above.)
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
12
OO; HC
------------------------------------------------------------------------------
/1/ The Series B Convertible Preferred Stock and Series C Convertible Preferred
Stock also accrue 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.
/2/ Pursuant to the terms of the Series B Convertible Preferred Stock, Series C
Convertible Preferred Stock, and Series D Convertible Preferred Stock, the
Reporting Person can not be the "beneficial owner" of more than 9.99% of the
Class A Common Stock within the meaning of Rule 13d-1 of the Securities Exchange
Act of 1934.
Page 4 of 19
--------------------- --------------------
CUSIP NO. 594972101 13G Page 5 of 19 Pages
--------------------- --------------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Kenneth Griffin
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
U.S. Citizen
U.S.A.
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 6
EACH 1,192,260 shares of Class A Common Stock
REPORTING 1,590 shares of Series B Convertible Preferred Stock
PERSON (convertible into 567,001 shares of Class A Common
WITH Stock)/1//2/
1,590 shares of Series C Convertible Preferred Stock
(convertible into 0 shares of Class A Common
Stock)/1//2/
1,451.1 shares of Series D Convertible Preferred Stock
(convertible into 2,902,200 shares of Class A Common
Stock)/1//2/
-----------------------------------------------------------
SOLE DISPOSITIVE POWER
7
0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*/2/
10
[X]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 9.99% as of December 31, 2001./2/ (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 B, Series C and Series D Convertible Preferred Stock
referred to in Row 6 above.)
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
12
IN
------------------------------------------------------------------------------
/1/ The Series B Convertible Preferred Stock and Series C Convertible Preferred
Stock also accrue 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.
/2/ Pursuant to the terms of the Series B Convertible Preferred Stock, Series C
Convertible Preferred Stock, and Series D Convertible Preferred Stock, the
Reporting Person can not be the "beneficial owner" of more than 9.99% of the
Class A Common Stock within the meaning of Rule 13d-1 of the Securities Exchange
Act of 1934.
Page 5 of 19
--------------------- --------------------
CUSIP NO. 594972101 13G Page 6 of 19 Pages
--------------------- --------------------
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Wellington Partners Limited Partnership
--------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
--------------------------------------------------------------------------------
SEC USE ONLY
3
--------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Illinois limited partnership
U.S.A.
--------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -------------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 6
EACH 1,192,260 shares of Class A Common Stock
REPORTING 1,590 shares of Series B Convertible Preferred Stock
PERSON (convertible into 567,001 shares of Class A Common
WITH Stock)/1//2/
1,590 shares of Series C Convertible Preferred Stock
(convertible into 0 shares of Class A Common
Stock)/1//2/
1,451.1 shares of Series D Convertible Preferred Stock
(convertible into 2,902,200 shares of Class A Common
Stock)/1//2/
-------------------------------------------------------------
SOLE DISPOSITIVE POWER
7
0
-------------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*/2/
10
[X]
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 9.99% as of December 31, 2001./2/ (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 B, Series C and Series D Convertible Preferred Stock
referred to in Row 6 above.)
--------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
12
PN; HC
--------------------------------------------------------------------------------
/1/ The Series B Convertible Preferred Stock and Series C Convertible Preferred
Stock also accrue 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.
/2/ Pursuant to the terms of the Series B Convertible Preferred Stock, Series C
Convertible Preferred Stock, and Series D Convertible Preferred Stock, the
Reporting Person can not be the "beneficial owner" of more than 9.99% of the
Class A Common Stock within the meaning of Rule 13d-1 of the Securities Exchange
Act of 1934.
Page 6 of 19
--------------------- --------------------
CUSIP NO. 594972101 13G Page 7 of 19 Pages
--------------------- --------------------
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Wingate Capital Ltd.
--------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
--------------------------------------------------------------------------------
SEC USE ONLY
3
--------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Cayman Islands company
--------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -------------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 6
EACH 1,192,260 shares of Class A Common Stock
REPORTING 1,590 shares of Series B Convertible Preferred Stock
PERSON (convertible into 567,001 shares of Class A Common
WITH Stock)/1//2/
1,590 shares of Series C Convertible Preferred Stock
(convertible into 0 shares of Class A Common
Stock)/1//2/
1,451.1 shares of Series D Convertible Preferred Stock
(convertible into 2,902,200 shares of Class A Common
Stock)/1//2/
-------------------------------------------------------------
SOLE DISPOSITIVE POWER
7
0
-------------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*/2/
10
[X]
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 9.99% as of December 31, 2001./2/ (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 B, Series C and Series D Convertible Preferred Stock
referred to in Row 6 above.)
--------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
12
CO
--------------------------------------------------------------------------------
/1/ The Series B Convertible Preferred Stock and Series C Convertible Preferred
Stock also accrue 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.
/2/ Pursuant to the terms of the Series B Convertible Preferred Stock, Series C
Convertible Preferred Stock, and Series D Convertible Preferred Stock, the
Reporting Person can not be the "beneficial owner" of more than 9.99% of the
Class A Common Stock within the meaning of Rule 13d-1 of the Securities Exchange
Act of 1934.
Page 7 of 19
--------------------- --------------------
CUSIP NO. 594972101 13G Page 8 of 19 Pages
--------------------- --------------------
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Kensington Global Strategies Fund, Ltd.
--------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
--------------------------------------------------------------------------------
SEC USE ONLY
3
--------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Bermuda company
--------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -------------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 6
EACH 1,192,260 shares of Class A Common Stock
REPORTING 1,590 shares of Series B Convertible Preferred Stock
PERSON (convertible into 567,001 shares of Class A Common
WITH Stock)/1//2/
1,590 shares of Series C Convertible Preferred Stock
(convertible into 0 shares of Class A Common
Stock)/1//2/
1,451.1 shares of Series D Convertible Preferred Stock
(convertible into 2,902,200 shares of Class A Common
Stock)/1//2/
-------------------------------------------------------------
SOLE DISPOSITIVE POWER
7
0
-------------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*/2/
10
[X]
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 9.99% as of December 31, 2001./2/ (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 B, Series C and Series D Convertible Preferred Stock
referred to in Row 6 above.)
--------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
12
CO; HC
--------------------------------------------------------------------------------
/1/ The Series B Convertible Preferred Stock and Series C Convertible Preferred
Stock also accrue 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.
/2/ Pursuant to the terms of the Series B Convertible Preferred Stock, Series C
Convertible Preferred Stock, and Series D Convertible Preferred Stock, the
Reporting Person can not be the "beneficial owner" of more than 9.99% of the
Class A Common Stock within the meaning of Rule 13d-1 of the Securities Exchange
Act of 1934.
Page 8 of 19
--------------------- --------------------
CUSIP NO. 594972101 13G Page 9 of 19 Pages
--------------------- --------------------
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Fisher Capital Ltd.
--------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
--------------------------------------------------------------------------------
SEC USE ONLY
3
--------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Cayman Islands company
--------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -------------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 6
EACH 1,192,260 shares of Class A Common Stock
REPORTING 1,590 shares of Series B Convertible Preferred Stock
PERSON (convertible into 567,001 shares of Class A Common
WITH Stock)/1//2/
1,590 shares of Series C Convertible Preferred Stock
(convertible into 0 shares of Class A Common
Stock)/1//2/
1,451.1 shares of Series D Convertible Preferred Stock
(convertible into 2,902,200 shares of Class A Common
Stock)/1//2/
-------------------------------------------------------------
SOLE DISPOSITIVE POWER
7
0
-------------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
--------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
--------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*/2/
10
[X]
--------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 9.99% as of December 31, 2001./2/ (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 B, Series C and Series D Convertible Preferred Stock
referred to in Row 6 above.)
--------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
12
CO
--------------------------------------------------------------------------------
/1/ The Series B Convertible Preferred Stock and Series C Convertible Preferred
Stock also accrue 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.
/2/ Pursuant to the terms of the Series B Convertible Preferred Stock, Series C
Convertible Preferred Stock, and Series D Convertible Preferred Stock, the
Reporting Person can not be the "beneficial owner" of more than 9.99% of the
Class A Common Stock within the meaning of Rule 13d-1 of the Securities Exchange
Act of 1934.
Page 9 of 19
--------------------- --------------------
CUSIP NO. 594972101 13G Page 10 of 19 Pages
--------------------- --------------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Citadel Trading Group, L.L.C.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Delaware limited liability company
U.S.A.
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 6
EACH 1,192,260 shares of Class A Common Stock
REPORTING 1,590 shares of Series B Convertible Preferred Stock
PERSON (convertible into 567,001 shares of Class A Common
WITH Stock)/1//2/
1,590 shares of Series C Convertible Preferred Stock
(convertible into 0 shares of Class A Common
Stock)/1//2/
1,451.1 shares of Series D Convertible Preferred Stock
(convertible into 2,902,200 shares of Class A Common
Stock)/1//2/
-----------------------------------------------------------
SOLE DISPOSITIVE POWER
7
0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*/2/
10
[X]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 9.99% as of December 31, 2001./2/ (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 B, Series C and Series D Convertible Preferred Stock
referred to in Row 6 above.)
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
12
OO
------------------------------------------------------------------------------
/1/ The Series B Convertible Preferred Stock and Series C Convertible Preferred
Stock also accrue 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.
/2/ Pursuant to the terms of the Series B Convertible Preferred Stock, Series C
Convertible Preferred Stock, and Series D Convertible Preferred Stock, the
Reporting Person can not be the "beneficial owner" of more than 9.99% of the
Class A Common Stock within the meaning of Rule 13d-1 of the Securities Exchange
Act of 1934.
Page 10 of 19
--------------------- --------------------
CUSIP NO. 594972101 13G Page 11 of 19 Pages
--------------------- --------------------
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Aragon Investments, Ltd.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Bermuda company
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
BENEFICIALLY SHARED VOTING POWER
OWNED BY 6
EACH 1,192,260 shares of Class A Common Stock
REPORTING 1,590 shares of Series B Convertible Preferred Stock
PERSON (convertible into 567,001 shares of Class A Common
WITH Stock)/1//2/
1,590 shares of Series C Convertible Preferred Stock
(convertible into 0 shares of Class A Common
Stock)/1//2/
1,451.1 shares of Series D Convertible Preferred Stock
(convertible into 2,902,200 shares of Class A Common
Stock)/1//2/
-----------------------------------------------------------
SOLE DISPOSITIVE POWER
7
0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*/2/
10
[X]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 9.99% as of December 31, 2001./2/ (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 B, Series C and Series D Convertible Preferred Stock
referred to in Row 6 above.)
------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
12
CO
------------------------------------------------------------------------------
/1/ The Series B Convertible Preferred Stock and Series C Convertible Preferred
Stock also accrue 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.
/2/ Pursuant to the terms of the Series B Convertible Preferred Stock, Series C
Convertible Preferred Stock, and Series D Convertible Preferred Stock, the
Reporting Person can not be the "beneficial owner" of more than 9.99% of the
Class A Common Stock within the meaning of Rule 13d-1 of the Securities Exchange
Act of 1934.
Page 11 of 19
--------------------- --------------------
CUSIP NO. 594972101 13G Page 12 of 19 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
Citadel Limited Partnership
225 W. Washington
9th Floor
Chicago, Illinois 60606
Illinois limited partnership
GLB Partners, L.P.
225 W. Washington
9th Floor
Chicago, Illinois 60606
Delaware limited partnership
Citadel Investment Group, L.L.C.
225 W. Washington
9th Floor
Chicago, Illinois 60606
Delaware limited liability company
Kenneth Griffin
225 W. Washington
9th Floor
Chicago, Illinois 60606
U.S. Citizen
Wellington Partners Limited Partnership
c/o Citadel Investment Group, L.L.C.
225 W. Washington
9th Floor
Chicago, Illinois 60606
Illinois limited partnership
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CUSIP NO. 594972101 13G Page 13 of 19 Pages
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Wingate Capital Ltd.
c/o Citadel Investment Group, L.L.C.
225 W. Washington
9th Floor
Chicago, Illinois 60606
Cayman Islands company
Kensington Global Strategies Fund, Ltd.
c/o Citadel Investment Group, L.L.C.
225 W. Washington
9th Floor
Chicago, Illinois 60606
Bermuda company
Fisher Capital Ltd.
c/o Citadel Investment Group, L.L.C.
225 W. Washington
9th Floor
Chicago, Illinois 60606
Cayman Islands company
Citadel Trading Group, L.L.C.
c/o Citadel Investment Group, L.L.C.
225 W. Washington
9th Floor
Chicago, Illinois 60606
Delaware limited liability company
Aragon Investments, Ltd.
c/o Citadel Investment Group, L.L.C.
225 W. Washington
9th Floor
Chicago, Illinois 60606
Bermuda company
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;
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CUSIP NO. 594972101 13G Page 14 of 19 Pages
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(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).
If this statement is filed pursuant to Rule 13d-1(c), check this
box. [X]
Item 4 Ownership:
CITADEL LIMITED PARTNERSHIP
GLB PARTNERS, L.P.
CITADEL INVESTMENT GROUP, L.L.C.
KENNETH GRIFFIN
WELLINGTON PARTNERS LIMITED PARTNERSHIP
WINGATE CAPITAL LTD.
KENSINGTON GLOBAL STRATEGIES FUND, LTD.
FISHER CAPITAL LTD.
CITADEL TRADING GROUP, L.L.C.
ARAGON INVESTMENTS, LTD.
(a) Amount beneficially owned:
1,192,260 shares of Class A Common Stock
1,590 shares of Series B Convertible Preferred Stock (convertible into 567,000
shares of Class A Common Stock)/1//2/
1,590 shares of Series C Convertible Preferred Stock (convertible into 0 shares
of Class A Common Stock)/1//2/
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CUSIP NO. 594972101 13G Page 15 of 19 Pages
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1,451.1 shares of Series D Convertible Preferred Stock (convertible into
2,902,200 shares of Class A Common Stock)/1/2/
(b) Percent of Class:
Approximately 9.99% as of December 31, 2001./2/ (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 B,
Series C and Series D Convertible Preferred Stock referred to above.)
/1/The Series B Convertible Preferred Stock and Series C Convertible Preferred
Stock also accrue 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.
/2/Pursuant to the terms of the Series B Convertible Preferred Stock, Series C
Convertible Preferred Stock, and Series D Convertible Preferred Stock, the
Reporting Persons can not be the "beneficial owners" of more than 9.99% of the
Class A Common Stock within the meaning of Rule 13d-1 of the Securities Exchange
Act of 1934.
(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) 1,590 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 the Company's Class A Common
Stock (the "Common Stock") at the conversion price of $12.50 (subject to
adjustment to prevent dilution), (ii) 1,590 shares of the Series C Convertible
Preferred Stock (the "Series C Preferred Shares"), which may be converted by the
Reporting Persons at any time prior to June 14, 2004 (the "Series C Maturity
Date"), into shares of Common Stock at the conversion price of $17.50 (subject
to adjustment to prevent dilution) and (iii) 1,451.1 shares of the Series D
Convertible Preferred Stock (the "Series D Preferred Shares" and together with
the Series B Preferred Shares and Series C Preferred Shares, the "Preferred
Shares") which may
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CUSIP NO. 594972101 13G Page 16 of 19 Pages
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be converted by the Reporting Persons at any time prior to and including June
14, 2004, into shares of Common Stock at the conversion price of $5.00.
On the Series B Maturity Date and Series C Maturity Date, the Company shall
either redeem the outstanding Series B Preferred Shares and Series C Preferred
Shares, or convert the Series B Preferred Shares and Series C 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 and Series C
Maturity Date, respectively. 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 and Series C Preferred Shares may be deemed to
beneficially own at the Series B Maturity Date and Series C Maturity Date may
change without any action taken by the holders of the Preferred Shares.
The Series B Preferred Shares and Series C 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 and Series C Preferred Shares had combined accrued
dividends of approximately $1,001,918.
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.
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.
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CUSIP NO. 594972101 13G Page 17 of 19 Pages
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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.
Page 17 of 19
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CUSIP NO. 594972101 13G Page 18 of 19 Pages
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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/ Kenneth Griffin
----------------------------------
Kenneth Griffin
CITADEL LIMITED PARTNERSHIP CITADEL INVESTMENT GROUP, L.L.C.
By: GLB Partners, L.P., By: /s/ Kenneth Griffin
its General Partner ---------------------------------
Kenneth Griffin, President
By: Citadel Investment Group, L.L.C.,
its General Partner WINGATE CAPITAL LTD.
By: /s/ Kenneth Griffin By: Citadel Limited Partnership,
--------------------------------- its Trading Manager
Kenneth Griffin, President
GLB PARTNERS, L.P. By: GLB Partners, L.P.,
its General Partner
By: Citadel Investment Group, L.L.C.,
its General Partner By: Citadel Investment Group, L.L.C.,
its General Partner
By: /s/ Kenneth Griffin
--------------------------------- By: /s/ Kenneth Griffin
Kenneth Griffin, President ---------------------------------
Kenneth Griffin, President
WELLINGTON PARTNERS LIMITED FISHER CAPITAL LTD.
PARTNERSHIP
By: Citadel Limited Partnership, By: Citadel Limited Partnership,
its General Partner its Trading Manager
By: GLB Partners, L.P., By: GLB Partners, L.P.,
its General Partner its General Partner
By: Citadel Investment Group, L.L.C., By: Citadel Investment Group, L.L.C.,
its General Partner its General Partner
By: /s/ Kenneth Griffin By: /s/ Kenneth Griffin
--------------------------------- ---------------------------------
Kenneth Griffin, President Kenneth Griffin, President
Page 18 of 19
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CUSIP NO. 594972101 13G Page 19 of 19 Pages
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CITADEL TRADING GROUP, L.L.C. ARAGON INVESTMENTS, LTD.
By: Citadel Limited Partnership, By: Citadel Limited Partnership,
its Managing Member its Trading Manager
By: GLB Partners, L.P., By: GLB Partners, L.P.,
its General Partner its General Partner
By: Citadel Investment Group, L.L.C., By: Citadel Investment Group, L.L.C.,
its General Partner its General Partner
By: /s/ Kenneth Griffin By: /s/ Kenneth Griffin
--------------------------------- ---------------------------------
Kenneth Griffin, President Kenneth Griffin, President
KENSINGTON GLOBAL STRATEGIES
FUND, LTD.
By: Citadel Limited Partnership,
its Trading Manager
By: GLB Partners, L.P.,
its General Partner
By: Citadel Investment Group, L.L.C.,
its General Partner
By: /s/ Kenneth Griffin
---------------------------------
Kenneth Griffin, President
Page 19 of 19