Latest news with #STRF
Yahoo
3 days ago
- Business
- Yahoo
Michael Saylor's Strategy bets on Bitcoin amid global tension
Michael Saylor's Strategy bets on Bitcoin amid global tension originally appeared on TheStreet. Michael Saylor's Strategy (Nasdaq: MSTR), formerly MicroStrategy, bought 705 Bitcoin worth approximately $75 million between May 26 and June 1, as per the company's 8-K filing with the Securities and Exchange Commission (SEC) on June 2. This is a significant development amid the ongoing global tension emerging out of the war in Europe. Strategy is the world's largest public corporate holder of Bitcoin. The business intelligence firm that began adding Bitcoin to its account book in 2020 now holds 580,955 BTC worth more than $60 billion at the time of writing. While Strategy made the latest Bitcoin acquisition at the average purchase price of $106,495 per BTC, its overall BTC purchase comes down to $40.68 billion at the average purchase price of $70,023. It used the proceeds from the sale of its preferred stock offerings, the 10% Series A Perpetual Strife Preferred Stock (STRF) and the 8% Series A Perpetual Strike Preferred Stock (STRK), to make the Bitcoin purchase last week. While the STRF stock was trading at $106 in pre-market hours, up 2.33% a day, STRK was trading at 103.50, up 0.333% a day. The MSTR stock, on the other hand, was trading at $367.77 in pre-market hours, down 0.30% a day. Saylor, the firm's co-founder and executive chairman, is a well-known Bitcoin advocate who has predicted that Bitcoin will hit the price of $13 million within 20 years. Saylor is very enthusiastic about the future of the world's largest cryptocurrency, which he believes will be driven by institutional adoption by governments and corporations. He recently told CNBC: Everywhere I go — Hong Kong, Korea, Abu Dhabi, Brazil, Kenya — people are building Bitcoin treasury companies. As per Kraken's price feed, the king coin was exchanging hands at $104,288.99 at press time, up 8.5% a month. Michael Saylor's Strategy bets on Bitcoin amid global tension first appeared on TheStreet on Jun 2, 2025 This story was originally reported by TheStreet on Jun 2, 2025, where it first appeared. Sign in to access your portfolio
Globe and Mail
3 days ago
- Business
- Globe and Mail
Strategy Stock (MSTR) Still a ‘Compelling Vehicle' for Bitcoin Exposure, Says Top Analyst
Strategy (MSTR), the largest corporate owner of Bitcoin in the world, climbed 0.73% on Monday and is up nearly 30% year-to-date, fueled by its expanding Bitcoin holdings and creative capital-raising efforts. Yesterday, TD Cowen's Top analyst Lance Vitanza reiterated a Buy rating on the stock, describing the company as a 'compelling vehicle for Bitcoin investors.' Confident Investing Starts Here: The five-star analyst highlighted Strategy's latest move, the debut of its first-ever Series F Redeemable Preferred Stock At-The-Market (STRF ATM) program, as a key catalyst for long-term value creation. With a price target of $590 and upside potential of 58%, the analyst believes that Strategy remains a smart long-term bet on Bitcoin. New STRF Offering Aims to Boost Shareholder Value Vitanza explained that the STRF ATM program was used to raise $2.1 billion, giving it strong backing to grow its Bitcoin portfolio without major dilution. Compared to the company's earlier funding plans, including its common stock ATM and Series K Preferred Stock ATM, the new tool is designed to be more shareholder-friendly and accretive. Last week, Strategy bought 4,020 Bitcoins for $427 million, using cash mostly from these offerings. Vitanza believes that using the STRF setup for such deals can lead to better use of funds and stronger returns for investors. BTC Torque Points to 8x Value Gain TD Cowen also updated its proprietary Bitcoin Torque (BTC Torque) model, a metric that calculates the value created for shareholders relative to the capital invested. After including share dilution and fees, the firm estimates a torque ratio of 8.0x over 10 years, implying that every $100 million raised through STRF could generate $800 million in shareholder value. Is MSTR Stock a Buy Right Now? According to TipRanks, MSTR stock has a consensus Strong Buy rating among 13 Wall Street analysts. That rating is based on 12 Buys and one Sell assigned in the past three months. The average MSTR price target of $524.92 implies a 41.03% upside from current levels. See more MSTR analyst ratings Disclaimer & Disclosure Report an Issue
Yahoo
7 days ago
- Business
- Yahoo
Bitcoin Surges Ahead as Strategy Lags
Since the start of this month, a growing divergence has emerged between bitcoin BTC and bitcoin-HODLer Strategy (MSTR). While bitcoin has climbed approximately 13%, nearing the $110,000 mark, MSTR shares have slipped 3%, trading around $372. This performance gap has become more pronounced since mid-May and raises questions about market sentiment toward the company that pioneered the bitcoin treasury strategy for corporations. Despite playing a leading role in this movement, Strategy's stock has not mirrored bitcoin's latest rally. One key factor is the rapid increase in the number of public companies adopting similar bitcoin strategies. According to data from over 113 public companies globally now hold bitcoin on their balance sheets, marking an increase of 11 new entrants over the past 30 days. Many appear to be following Strategy's playbook, but the firm's market premium is compressing, indicating that its early-mover advantage may be fading. Strategy's multiple to net asset value (mNAV), which reflects how the market values the company relative to its bitcoin holdings, has dropped to 1.80 one of its lowest points over the past year. This figure is calculated by dividing the enterprise value (EV) by the market value of its bitcoin holdings. The EV includes MSTR's current market cap, convertible debt, and preferred shares (such as STRK and STRF), minus the company's most recent reported cash balance. A lower mNAV limits Strategy's ability to issue new equity without significantly diluting existing shareholders, although it remains above 1x, preserving some headroom. Strategy's recent 4,020 BTC purchase, its smallest since May 5, also reveals a significant change in funding structure. The acquisition was financed not only through common stock but also through preferred securities — 81.7% from common stock, 15.9% from STRK, and 2.4% from STRF, according to MSTR analyst Ben Werkman. This diversification indicates that the company is strategically tapping alternative instruments via its at-the-market (ATM) offering, possibly to mitigate shareholder dilution and optimize capital raising in a compressed mNAV environment.
Yahoo
26-05-2025
- Business
- Yahoo
Saylor makes another silent weekend move
Strategy (previously MicroStrategy) has just announced that it raised $427 million in just one week by selling corporate shares via the distribution of MSTR, STRK, and STRF shares through ATM offerings accounts to buy 4,020 additional Bitcoins. Now, MicroStrategy holds 580,250 BTC. MicroStrategy uses an approach known as "at-the-market" (ATM) offerings to sell several types of company stock—MSTR, STRK, and STRF—directly to investors. MSTR is their common stock, while STRK and STRF are preferred stock that pay annual interest at 8% and 10%, respectively. Thus, MicroStrategy can raise cash by selling shares without taking on traditional debt. They then use that cash to purchase Bitcoin, which they believe is a better long-term investment than cash. MicroStrategy issued its first preferred stock, STRK, in early 2025. The offering was priced on January 30, 2025, and the shares then began trading on the Nasdaq under the ticker STRK on February 1, 2025. Per the company's announcement, MicroStrategy then issued another preferred stock, STRF, with the offering priced on March 20, 2025. The software company has often been criticized for putting too much risk in one basket. Saylor has borrowed billions of dollars to buy Bitcoin. If Bitcoin falls below a specific price threshold, the company might not repay its loans or interest, depending on the debt terms (some debt deals contain strict clauses). Even more controversial than borrowing money to buy Bitcoin, MicroStrategy is 100% invested in Bitcoin instead of diversifying its resources to different investment areas. Peter Schiff said that if Bitcoin crashes, the company could lose billions of dollars and possibly go bankrupt. But Saylor has reiterated that even if Bitcoin crashes, lenders cannot force MicroStrategy to sell its Bitcoin quickly because there will be no margin call. Saylor thinks they won't panic-sell no matter how low Bitcoin goes. At press time, Bitcoin is trading at $109,797.03, as per Kraken's price feed. Saylor makes another silent weekend move first appeared on TheStreet on May 26, 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Michael Saylor has a shocking plan to boost Strategy's balance sheet
Strategy (Nasdaq: MSTR), earlier known as MicroStrategy, plans to raise $2.1 billion through the sale of the shares of its 10.00% Series A Perpetual Strife Preferred Stock (Nasdaq: STRF), the firm announced on May 22. The firm said it has entered into a sales agreement with TD Securities, Barclays Capital, and The Benchmark Company for the sale of the STRF shares. Launched on March 26, the STRF share was exchanging hands at $99.87 in pre-market hours at the time of writing, up 11.83% a month. The firm's 8.00% Series A Perpetual Strike Preferred Stock (Nasdaq: STRK) was trading at $101.75 in pre-market, up 17.65% a month. This is a developing story.
