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MicroStrategy Incorporated (NASDAQ:MSTR), known for its substantial Bitcoin investments, disclosed in a recent SEC filing that it has acquired an additional 20,356 bitcoins. The purchase, made between February 18 and February 23, 2025, involved approximately $1.99 billion in cash, averaging around $97,514 per bitcoin. The company’s stock has shown remarkable volatility with a beta of 3.26 and has delivered an impressive 335.95% return over the past year. According to InvestingPro analysis, which offers 12 additional investment insights for this stock, the company’s current market capitalization stands at $76 billion.
The acquisition was funded through the proceeds of a convertible notes offering completed on February 21, 2025, which raised $2.0 billion with a 35% conversion premium based on the company’s class A common stock price. The offering also includes an option for the initial purchasers to buy an additional $300 million in convertible notes until February 27, 2025. InvestingPro data indicates the company’s overall financial health score is currently rated as Weak, with short-term obligations exceeding liquid assets, as reflected in a current ratio of 0.71.
As of February 23, 2025, MicroStrategy’s total Bitcoin holdings amount to approximately 499,096 bitcoins, acquired at an average price of $66,357 per bitcoin, inclusive of fees and expenses, totaling approximately $33.1 billion. The company’s strategy of accumulating Bitcoin has been a focal point for investors and the market alike.
The filing also provided an update on the company’s at-the-market equity offering program, indicating that no shares were sold between February 18 and February 23, 2025.
In addition to the Bitcoin acquisition, the filing included key performance indicators (KPIs) related to the company’s Bitcoin strategy. From January 1 to February 23, 2025, the company’s BTC Yield was 6.9%, BTC Gain was 30,702 bitcoins, and BTC $ Gain was approximately $2.941 billion, based on the market price of Bitcoin on the Coinbase (NASDAQ:COIN) exchange as of February 23, 2025.
The document also detailed the company’s shares outstanding, including various classes of common and convertible stock, and the impact of the convertible notes on share dilution.
This SEC filing provides a transparent look at MicroStrategy’s financial maneuvers and its continued investment in Bitcoin, reflecting the company’s ongoing commitment to incorporating cryptocurrency into its treasury strategy. For a comprehensive analysis of MSTR’s valuation, financial health, and growth prospects, including access to the detailed Pro Research Report covering 1,400+ top stocks, visit InvestingPro.
In other recent news, MicroStrategy Incorporated has priced a $2 billion private offering of convertible senior notes due in 2030, with an option for purchasers to acquire an additional $300 million. The net proceeds from this offering are estimated to be around $1.99 billion, potentially rising to $2.28 billion if the additional notes are fully purchased. The company plans to use the proceeds for general corporate purposes, including acquiring more Bitcoin. In a related move, MicroStrategy announced a significant acquisition of 7,633 bitcoins for approximately $742.4 million, increasing its total holdings to 478,740 bitcoins valued at over $46 billion.
Additionally, the California State Teachers Retirement System (CalSTRS) nearly doubled its holdings in MicroStrategy’s common stock during the fourth quarter of 2024, with its investment value rising to approximately $83 million. This increase in holdings aligns with MicroStrategy’s rebranding efforts and its focus on cryptocurrency. Meanwhile, the company issued a profitability warning, highlighting concerns over increased tax burdens and a net loss for the fiscal year ended December 31, 2024, primarily due to $1.79 billion in digital asset impairment losses.
MicroStrategy has also provided updates on its financial activities, including plans for redeeming its 0.0% Convertible Senior Notes due in 2027. The company has received conversion requests amounting to approximately $857.4 million in principal, resulting in the issuance of 6,022,026 shares upon settlement. Despite reporting a significant net loss of $670.8 million for the fourth quarter of 2024, the company remains committed to its strategy of acquiring Bitcoin as a strategic asset.
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