Latest news with #StrikePreferred
Business Insider
23-05-2025
- Business
- Business Insider
Michael Saylor's $2.1B Bitcoin Bet Could Propel Strategy (MSTR) to a $10 Trillion Valuation
Strategy (MSTR) founder and executive chairman, Michael Saylor, isn't just bullish on Bitcoin — he's building a corporate empire around it. Strategy, formerly MicroStrategy, recently announced plans to raise a whopping $2.1 billion through an at-the-market (ATM) sale of its 10.00% Series A Perpetual Strife Preferred Stock (STRF). The company has made it clear that the proceeds from this ATM program will be used for 'general corporate purposes,' with a key focus on acquiring more Bitcoin. Confident Investing Starts Here: This move aligns perfectly with the firm's increasingly crypto-heavy strategy, which has become a defining trait of its market identity under Saylor. In terms of share prices, the STRF stock, which debuted on March 26, 2025, has already gained traction. As of now, it's trading at $99.40, up 9.13% in the past month. Meanwhile, another of Strategy's preferred offerings, the 8.00% Series A Perpetual Strike Preferred Stock (STRK), is also on the rise, up 17.93% month-over-month and trading at $100.91. At the same time, Strategy's stock is up 15.54% in the past month, trading at $399.46. A Legacy of Bitcoin-First Thinking Since 2020, Strategy has been transforming from a traditional software company into a Bitcoin holding powerhouse. Headquartered in Virginia, the company disclosed in a May 19 SEC filing that it bought Bitcoin at an average price just shy of $103,500. This brings its total Bitcoin holdings to 576,230 BTC — now worth over $64.25 billion — making it the largest corporate Bitcoin holder in the world. Saylor's $13M Bitcoin Prediction and $10 Trillion Vision Michael Saylor is setting the bar sky-high. In a recent interview with The Financial Times, the Strategy founder projected that Bitcoin could soar to $13 million per coin by 2045. This bold forecast goes hand in hand with his grand vision for the company. 'MicroStrategy is in a position where we can grow from a $100 billion enterprise to a $1 trillion enterprise to a $10 trillion enterprise,' Saylor said. Currently, Strategy holds a market cap of $110.5 billion, meaning there's plenty of potential upside if his Bitcoin thesis proves right. The timing of this new offering is no coincidence. Bitcoin hit a record high of $111,861.22 on May 22 and remains just below that level, trading at $111,150 at the time of writing. Saylor is increasing his stakes, confident that Bitcoin still has significant upward potential, and he is strategically positioning Strategy to capitalize on this surge. Is MicroStrategy a Buy Right Now? MicroStrategy has drawn strong support from Wall Street analysts. According to TipRanks, the stock holds a Strong Buy rating. Out of 13 analysts, 12 currently call it a Buy, with just one lone Sell and zero Hold ratings. The average MSTR price target sits at $524.92, implying a 30.41% upside.
Yahoo
31-01-2025
- Business
- Yahoo
MicroStrategy Prices $563M Offering, Plans More Bitcoin Buys Despite Stock Volatility
MicroStrategy (NASDAQ:MSTR) has locked in pricing for its $563.4 million stock offering, selling 7.3 million shares of its 8.00% Series A Perpetual Strike Preferred at $80 per share. Warning! GuruFocus has detected 6 Warning Signs with MSTR. The deal is set to close on February 5, 2025, pending standard approvals. This preferred stock comes with a $100 per share liquidation preference and offers an 8.00% annual dividend. MicroStrategy also has the right to redeem all outstanding shares for cash if the total liquidation preference drops below 25% of the original offering. The company plans to use the funds for general corporate purposes, which, unsurprisingly, includes buying more bitcoin alongside working capital needs. MicroStrategy's stock has been on a wild ride. Over the past year, its price return has surged well over 550%, far outpacing the S&P 500's double-digit gains. However, in the past week, the stock has dipped more than 8%, highlighting its volatility compared to broader market movements. This article first appeared on GuruFocus. Inicia sesión para acceder a tu cartera de valores
Yahoo
27-01-2025
- Business
- Yahoo
MicroStrategy Just Went All In on Bitcoin--Again. Is This Genius or Financial Suicide?
MicroStrategy (NASDAQ:MSTR) just went all inagain. The Bitcoin (BTC-USD) powerhouse is raising another $250 million through a new preferred stock offering, using the cash to fuel its ever-growing BTC stash. The latest move comes on the heels of a $1.1 billion Bitcoin buy, pushing its total holdings to a jaw-dropping 471,107 BTC, now worth over $48 billion. With an average purchase price of $64,524 per coin, some of its recent buys are sitting at a loss. But MicroStrategy isn't blinking. It's doubling down, selling 2.5 million shares of its new Series A Perpetual Strike Preferred Stock, which pays dividends in cash, stock, or both. Warning! GuruFocus has detected 6 Warning Signs with MSTR. CEO Michael Saylor has made one thing clear: MicroStrategy isn't just holding Bitcoinit's building an empire around it. The company, once a pure enterprise software firm, now proudly brands itself as the world's first and largest Bitcoin treasury company. But not everyone's buying in. The stock has taken a hit lately, caught in the broader tech selloff and uncertainty around U.S. crypto policy. Trump's vague stance on Bitcoin hasn't helped either. Meanwhile, STRK stockholders get some flexibilityit's convertible into Class A common sharesbut MicroStrategy still holds the right to redeem it under specific conditions. This kind of relentless accumulation is either pure genius or a ticking time bomb. With Bitcoin briefly dipping below $100,000, some question whether MicroStrategy's timing is off. But the company is still sitting on $17.7 billion in unrealized profits from its BTC stash. Saylor's playbook? Leverage, accumulate, repeat. Whether this latest capital raise cements MicroStrategy as the ultimate Bitcoin whale or sets it up for a painful lesson in volatility is the billion-dollar question investors are trying to answer. This article first appeared on GuruFocus. Sign in to access your portfolio
