SoFi stock falls after announcing $1.5B public offering of common stock
Investing.com - Strategy (NASDAQ:MSTR) stock rose Wednesday after Mizuho reiterated its Outperform rating and $484.00 price target following an investor Q&A with the company’s CFO.
Mizuho highlighted that Strategy has raised $1.44 billion through equity sales to build a USD reserve, which secures 21 months of preferred dividend coverage and reinforces liquidity without requiring Bitcoin sales.
The company plans to expand its reserves when mNAV exceeds 1, demonstrating capital agility and investor protection, according to Mizuho’s research note. Strategy has indicated it does not plan to issue new convertible notes, with existing notes to be equitized at maturity.
The firm noted that Strategy is shifting toward perpetual preferred equity for flexibility and can sustain operations for longer than three years at current Bitcoin prices, using BTC sales only as a last resort.
Mizuho also mentioned that Strategy’s future monetization options like lending and covered calls remain exploratory, while its capital strategy continues to be mNAV-driven with ongoing progress on the company’s 21/21 Plan.
In other recent news, Strategy Inc. reported updates on its recent at-the-market offerings and bitcoin acquisitions. Between November 10 and November 16, the company sold various preferred stock shares, including 39,957 shares of its 10.00% Series A Perpetual Strife Preferred Stock, generating net proceeds of $4.4 million. Additionally, 1,313,641 shares of Variable Rate Series A Perpetual Stretch Preferred Stock were sold, yielding net proceeds of $131.2 million. The company also sold 5,513 shares of 8.00% Series A Perpetual Strike Preferred Stock, resulting in net proceeds of $0.5 million. In another development, Strategy has joined the Open Semantic Interchange initiative, contributing its expertise in semantic layer technology. Benchmark has reiterated its Buy rating on Strategy with a price target of $705. Furthermore, Strategy faces potential exclusion from major equity indices, as warned by JPMorgan analysts, due to its leveraged exposure to the cryptocurrency market. This exclusion could result in significant outflows from passive funds tied to the company.
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