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TYSONS CORNER, Va. - Strategy Inc (NASDAQ:STRF/STRC/STRK/STRD/MSTR) raised $27.3 million through its at-the-market (ATM) offering programs and purchased 220 bitcoin during the week of October 6-12, according to a company press release. The company’s stock, which has shown a 43% return over the past year according to InvestingPro data, continues to exhibit significant volatility in line with bitcoin price movements.
The company, which describes itself as the largest corporate holder of bitcoin, now holds 640,250 bitcoin with an aggregate purchase price of $47.38 billion. The average purchase price of the newly acquired bitcoin was $123,561 per coin. Trading at a P/E ratio of 16.2, InvestingPro analysis suggests the stock is currently fairly valued, with additional insights available in the comprehensive Pro Research Report.
The funds for the recent bitcoin purchases came from proceeds of the company’s various preferred stock offerings. During the reporting period, Strategy sold 170,663 shares of its 10.00% series A perpetual strife preferred stock (STRF), 16,873 shares of its 8.00% series A perpetual strike preferred stock (STRK), and 68,775 shares of its 10.00% series A perpetual stride preferred stock (STRD).
The company did not sell any shares of its variable rate series A perpetual stretch preferred stock (STRC) or its class A common stock (MSTR) during this period.
Strategy still has significant capacity remaining in its ATM programs, with approximately $1.7 billion available under the STRF ATM, $4.2 billion under the STRC ATM, $20.37 billion under the STRK ATM, $4.15 billion under the STRD ATM, and $15.91 billion under the MSTR ATM.
The company positions itself as the "world’s first Bitcoin Treasury Company" that has adopted bitcoin as its primary treasury reserve asset, using proceeds from equity and debt financings as well as cash flows from operations to accumulate the cryptocurrency. With its next earnings report due on October 30, investors can access detailed financial analysis and 12 additional ProTips through InvestingPro’s comprehensive research platform.
In other recent news, Strategy Inc reported that it no longer expects to be subject to the 15% corporate alternative minimum tax (CAMT) following interim guidance from the U.S. Department of the Treasury and the IRS. The clarification allows corporations to disregard unrealized gains and losses on digital asset holdings when calculating adjusted financial statement income. Strategy, known for its substantial bitcoin holdings, currently possesses 640,031 bitcoins, solidifying its position as the largest corporate bitcoin holder. In a related development, Benchmark reiterated a Buy rating on Strategy, citing its continued leadership in the digital asset treasury space.
Meanwhile, Monness, Crespi, Hardt maintained a Sell rating on Strategy with a price target of $175.00, reflecting a cautious outlook. The firm took into account a 5% discount to HODL under certain conditions and a projected Bitcoin price of around $100,000. Additionally, Strategy announced updates on its at-the-market equity offering programs, revealing the sale of 101,713 shares of its 10.00% Series A Perpetual Strife Preferred Stock, generating net proceeds of $11.3 million. The company still has $1.72 billion of these shares available for future issuance and sale.
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