MicroStrategy holds off on Bitcoin buys, offers new stock

TYSONS CORNER, VA – MicroStrategy Incorporated (NASDAQ:MSTR), a company known for its substantial Bitcoin holdings and currently valued at $84.4 billion, disclosed today that it has not purchased additional Bitcoin or sold any shares of its class A common stock in the past week.

This announcement comes amidst a period of significant interest in the company’s cryptocurrency strategy. According to InvestingPro data, the stock has demonstrated remarkable volatility with a beta of 3.26, reflecting its close ties to cryptocurrency market movements.

The company’s latest SEC filing revealed that from January 27, 2025, to February 2, 2025, there were no sales of class A common stock under its at-the-market equity offering program and no new Bitcoin acquisitions. However, on January 30, 2025, MicroStrategy priced an offering of 7,300,000 shares of 8% Series A Perpetual Strike Preferred Stock at $80 per share, resulting in net proceeds of approximately $563.4 million. The offering is set to close on February 5, 2025, subject to customary closing conditions. InvestingPro analysis shows the company operates with a moderate level of debt, with a debt-to-equity ratio of 1.13.

MicroStrategy has stated its intention to use the proceeds from this offering for general corporate purposes, which includes the potential acquisition of more Bitcoin. As of February 2, 2025, the company and its subsidiaries collectively hold approximately 471,107 bitcoins. These were acquired at an aggregate purchase price of around $30.4 billion, with an average cost of approximately $64,511 per bitcoin, inclusive of fees and expenses.

The company’s aggressive Bitcoin strategy has yielded impressive results, with InvestingPro data showing a remarkable 569% return over the past year. Investors seeking deeper insights into MicroStrategy’s financial health and valuation metrics can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The company’s approach to Bitcoin has been closely watched by investors and the cryptocurrency community alike. MicroStrategy’s substantial investment in Bitcoin has positioned it as a significant player in the crypto asset space, with its holdings representing a considerable portion of its market valuation. Based on InvestingPro’s Fair Value analysis, the stock currently appears slightly overvalued, though it maintains a "Fair" overall financial health score.

The company’s future Bitcoin purchases and the performance of its newly offered preferred stock could have implications for its overall financial strategy and market perception.

The information for this report is based on a press release statement filed with the SEC.

In other recent news, MicroStrategy Incorporated has disclosed details regarding its recent public offering of 7.3 million shares of 8.00% Series A Perpetual Strike Preferred Stock, priced at $80 per share. The company anticipates net proceeds of approximately $563.4 million from this offering, intended for general corporate purposes, including the acquisition of Bitcoin. Investors are offered an annual dividend rate of 8.00%, with the option to convert their preferred shares into MicroStrategy’s class A common stock.

In a significant move, MicroStrategy has purchased an additional 10,107 Bitcoin, affirming its commitment to the cryptocurrency. The company’s Chairman, Michael Saylor, has been recognized for his role in initiating the trend of adopting Bitcoin as a treasury asset among public firms.

Furthermore, MicroStrategy has announced enhancements to MicroStrategy ONE, its AI-powered platform. These updates aim to deliver more personalized, human-like conversations by enabling the Auto AI bot to understand ambiguous questions through context and user history.

Norway’s sovereign wealth fund has also increased its indirect exposure to Bitcoin by 153%, largely through investments in companies like MicroStrategy.

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