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MicroStrategy Inc (NASDAQ:MSTR), a company that has positioned itself within the cryptocurrency space and currently commands a market capitalization of $66.48 billion, has disclosed in a recent SEC filing that it has not sold any shares of its class A common stock or purchased any additional bitcoin in the period between February 24, 2025, and March 2, 2025. As of the latter date, the company and its subsidiaries collectively hold approximately 499,096 bitcoins, which were acquired at an aggregate purchase price of around $33.1 billion, averaging approximately $66,357 per bitcoin, inclusive of fees and expenses. According to InvestingPro data, the stock has shown significant volatility, with a 136.64% return over the past year despite recent pullbacks.
In the same filing, dated today, the company also announced a quarterly cash dividend on its 8.00% series A perpetual strike preferred stock, with the ticker symbol STRK, listed on The Nasdaq Global Select Market. The declared dividend is approximately $1.24 per share and is payable on March 31, 2025, to stockholders of record as of the close of business on March 15, 2025. The dividend amount reflects a prorated calculation based on the issuance date of the STRK shares, which was February 5, 2025. While the company pays dividends on its preferred stock, InvestingPro analysis indicates that common shareholders do not receive dividends, with the company maintaining a weak financial health score of 1.47 out of 5.
The company, founded in 1989 and headquartered in Tysons Corner, Virginia, has also maintained a dashboard on its website as a means to provide information to the public, which includes updates on its securities market prices, bitcoin holdings, key performance indicators, and other supplemental data. This dashboard serves as part of the company’s commitment to transparency and compliance with Regulation FD, which aims to ensure broad and non-exclusionary distribution of material information.
The information contained in the SEC filing is not deemed "filed" for purposes of the Securities Exchange Act of 1934, nor is it subject to the liabilities of that section, nor is it incorporated by reference in any subsequent SEC filings, except as explicitly stated in such filings.
The forward-looking statements in the filing, including those related to the payment of dividends on the STRK shares, are subject to various risk factors and uncertainties that could cause actual results to differ materially from expectations. These factors include market conditions and other risks outlined in the company’s Annual Report on Form 10-K filed on February 18, 2025, and in other documents filed with the SEC.
MicroStrategy has been known for its aggressive investment in bitcoin, positioning itself as a major corporate holder of the cryptocurrency. The announcement of maintaining its substantial bitcoin holdings and the declaration of a dividend on its preferred stock are key developments for the company and its investors. Trading at $255.43, the stock currently sits between analyst targets ranging from $212.11 to $650. For deeper insights into MicroStrategy’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to over 12 additional ProTips and detailed financial metrics.
In other recent news, MicroStrategy Incorporated has made significant financial maneuvers with its Bitcoin investments. The company disclosed the acquisition of an additional 20,356 bitcoins for approximately $1.99 billion, bringing its total holdings to around 499,096 bitcoins. This purchase was funded through a $2 billion convertible notes offering, which was priced with a 35% conversion premium. The notes, due in 2030, are targeted at institutional buyers and are expected to raise additional funds if purchasers exercise the option to buy more notes. MicroStrategy plans to use the proceeds for general corporate purposes, including further Bitcoin acquisitions.
Additionally, the company has announced a full redemption of its 0.0% Convertible Senior Notes due 2027, with conversion requests amounting to approximately $857.4 million in principal. This will result in the issuance of over 6 million shares upon settlement. Despite these substantial investments, MicroStrategy has issued a profitability warning, citing concerns over increased tax burdens and significant digital asset impairment losses. The company expressed uncertainty about regaining profitability if it continues to face fair value losses on its Bitcoin investments. Nonetheless, MicroStrategy remains committed to its Bitcoin strategy, emphasizing the cryptocurrency’s role as a strategic asset.
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