The purchase was funded mostly common stock issuance and brought the company's holdings to 528,185 BTC.
Analysts at Bernstein have made a bold prediction regarding MicroStrategy, now known as Strategy, the Bitcoin proxy firm co-founded by Michael Saylor. They forecast that it could amass over 1 million Bitcoin (BTC) by 2033, potentially positioning Strategy to hold 5% of BTC’s total supply. Strategy Stock (MSTR) Receives ‘Outperform’ Rating Led by analyst Gautam Chhugani, Bernstein’s research note reflects an updated bullish case based on Strategy’s strong Q4 financial results and its recent aggressive Bitcoin purchases. The firm has assigned an “outperform” rating to Strategy’s stock (MSTR) with a price target of $600, suggesting a potential upside of 75% from its current trading level.As of now, Strategy’s stock is priced at $335.26, having experienced a slight decline of 2.09% recently. Related Reading: Whale Alert: 200 Million Dogecoin Bought—Is A Price Rally On The Horizon? Bernstein’s analysis indicates that Bitcoin could reach $200,000 by the end of 2025, $500,000 by 2029, and soar to $1 million by 2033, reflecting a potential 1,044% increase for the market’s leading cryptocurrency in the next 8 years from current valuations. This projected growth in Bitcoin’s value is expected to significantly enhance Strategy’s earnings per share, which are anticipated to rise to $207, up from the current $67.50. Holdings Set To Surge To 5.8% Of Supply In a “bull case” scenario, the analysts predict that Strategy’s Bitcoin holdings could increase to represent 5.8% of the current circulating supply of approximately 19.8 million BTC, compared to only 2.5% at present, assuming favorable capital market conditions with low interest rates and a sustained bull cycle in cryptocurrency. However, with this growth comes a substantial increase in debt, which Bernstein estimates could reach $100 billion, coupled with equity proceeds of around $84 billion. In a more conservative base case, the analysts expect Strategy’s holdings to climb to about 4% of Bitcoin’s circulating supply, while a bear case could see stagnation at approximately 2.6%, potentially leading to forced liquidations of assets. Related Reading: Analyst Unveils Extended XRP Price Target To $44, Reveals When To Take Profits As of March 25, Strategy owned 506,137 Bitcoin, acquired at an average price of $66,608, which equates to a total value of around $33.7 billion. Recently, the company made headlines by purchasing an additional 6,911 BTC for $584.1 million through a combination of selling MSTR stock and issuing perpetual preferred shares (noted as STRK and STRF). Bernstein views Strategy’s Bitcoin treasury as a core component of its business model, despite facing challenges related to its premium-to-net asset value (NAV) valuation and the aggressive pace of its Bitcoin acquisitions. On Tuesday, Strategy’s shares closed at $341.81, reflecting a gain of 1.8%, reinforcing its position as a key player in institutional Bitcoin accumulation. Similarly, Bitcoin has also seen a 5% increase in the fourteen day time frame, trading at $87,470 at the time of writing. Featured image from DALL-E, chart from TradingView.com
Strategy Executive Chair Michael Saylor discusses a U.S. Bitcoin strategic reserve, why securities holders keep him sleepless, and his own economic immortality.
The STRF sale is scheduled to close later on Tuesday, with Strategy raising approximately $711 million in net proceeds.
The company used proceeds from the sale of common stock for this latest purchase.
This is the initial sale of the company's Perpetual Strife Preferred Stock.
The world's largest corporate holder of bitcoin is looking to raise around $500 million in an offering of Perpetual Preferred Strife Stock.
MSTR's recent price action is exact inverse of the BTC topping pattern from January that warned of a price sell-off.
The Michael Saylor-led company now holds 499,226 BTC purchased for an average price of $66,360 per token.
STRK has risen 3% since its February launch, while MSTR has dropped over 20%.
Michael Saylor, co-founder and chairman of Strategy (formerly Microstrategy), is intensifying efforts to acquire Bitcoin (BTC) by tapping into capital markets, announcing plans to issue up to $21 billion in preferred stock. Strategy Plans Major Sale Of Preferred Shares According to Bloomberg, the new offering will consist of 8% series A perpetual-strike preferred shares, which are convertible into class A common stock. The company plans to sell these shares through an “at the market offering” program, allowing for flexibility in timing and pricing. This approach builds on a previous successful effort in January, when Strategy raised $563 million by issuing preferred shares priced at $80 each, which were offered at a discount to their market value. Related Reading: Dogecoin Crash? Analyst Predicts Drop To $0.12 Before Rebound Preferred stocks are unique hybrid securities that combine features of both equity and debt, offering investors a fixed dividend while providing a claim on company assets. The favorable terms of the January deal reportedly attracted significant investor interest, contributing to a strong performance of the newly issued shares. Since late October, Strategy has been actively acquiring Bitcoin, and the latest capital raise is part of a broader strategy to secure $42 billion over the next few years through various securities offerings. This includes a focus on selling fixed-income securities while managing common stock sales to fund additional BTC purchases. Currently, the firm holds approximately 499,096 Bitcoin, valued at around $42 billion. Shares Drop 10% Amid Bitcoin Crash Despite this purchase plan, Strategy reported that it did not purchase any Bitcoin between March 3 and March 9, according to a filing with the US Securities and Exchange Commission. This pause comes amid a fluctuating cryptocurrency market, where the market’s leading crypto, BTC, recently trades at $79,000 down 4.5% for the day and approximately 18% on the monthly time frame. The preferred stock market has seen varied performance; while the shares climbed 18% from their initial pricing, they faced a decline of over 6% in a recent trading session as the supply increased. Related Reading: Cardano Bulls Eye $10 Target – Analyst Reveals Key Levels To Break Despite this fluctuation, the preferred shares have outperformed common stock and Bitcoin over the same period, suggesting a robust demand from investors. As seen in the daily chart below, shares of Strategy (MSTR), also experienced a drop of around 15% to $238 on Monday, reflecting broader market trends that have seen the company’s stock down approximately 10% this year. In contrast, shares have surged over 2,200% since Saylor began investing in Bitcoin as an inflation hedge in 2020, while Bitcoin itself has risen over 600%. The announcement of Strategy’s plans coincided with recent developments from the US government. President Donald Trump signed an executive order to create a strategic US Bitcoin reserve, which will be funded through cryptocurrencies forfeited in legal proceedings. Featured image from DALL-E, chart from TradingView.com
Strategy (formerly known as MicroStrategy) has unveiled plans to raise $21 billion through its Series A preferred stock (STRK) to acquire more Bitcoin. According to a March 10 statement, the company had entered a sales agreement to issue and sell shares of its 8.00% Series A perpetual strike preferred stock at the market (ATM). The shares will […]
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A fresh round of purchases of bitcoin would bring the company's holdings above 500,000 tokens..
Bitcoin fell as low as $80,226 with the leading altcoins all registering significant losses.
The Michael Saylor-led company holds just shy of half a million BTC tokens.
Strategy and Coinbase lead the crypto-equity rally in pre-market trading, both up double digits.
The crypto market has experienced an unprecedented surge in volatility, with established coins like Bitcoin and Ethereum facing extreme price swings. Since January, the frequency of flash crashes has risen sharply, erasing billions from the market. A crypto analyst has suggested that these flash crashes have been driven by several factors, providing a detailed insight into what’s really going on in the market. Why Flash Crashes Are Occurring In The Crypto Market A crypto analyst known as ‘The Kobeissi Letter’ has shed light on the recent market crash and why top coins are falling drastically. The analyst revealed that the increasing number of flash crashes has resulted in over $300 billion being removed from the market in just 24 hours. Related Reading: Crypto Liquidations Cross $2.22 Billion, Here’s How Much Dogecoin Traders Lost He disclosed that on the previous day, the market began selling off, with Bitcoin dropping below the $95,000 mark. Between 1:45 AM ET and 2:15 AM ET, the cryptocurrency had one of the most shocking crashes, falling by $5,000 in mere minutes. Ethereum, the second largest cryptocurrency after Bitcoin, had it even worse. The altcoin experienced massive liquidations that contributed to a 37% price crash on February 2, fueled by trade war headlines. The Kobeissi Letter has revealed that the key factor behind these dramatic flash crashes is the growing divide between institutional and retail investors. Wall Street Hedge funds have increased their short positions on Ethereum by 500% since November 2024, marking a historic level of institutional bearishness toward Ethereum. Short positioning in Ethereum has also increased by over 40% in just one week. Moreover, Ethereum’s price is down by approximately 40% since December 2024, while Bitcoin has fallen by 15%. On the other hand, institutions have continued to accumulate Bitcoin, while retail investors have poured capital into smaller altcoins like Solana, creating extreme volatility in these assets. This “polarization,” as the analyst calls it, has led to the formation of “air pockets” in liquidity. As a result, when a sell-off starts, it triggers cascading liquidations, amplifying market instability and price crashes. The analyst has also pinpointed that this polarization phenomenon works in the opposite direction, as the market can experience rapid recovery, leading to billions added to its market cap within hours. Shifts In Sentiment And Political Influence Contribute To Market Crash The Kobeissi Letter revealed that the Fear and Greed Index has fallen from a bullish stance just weeks ago to 29% extreme Fear, underscoring the speed at which the market’s sentiment is changing to the negative. The analyst suggests that the extreme positioning in the crypto market is leading to these increasing flash crashes, making crypto significantly unpredictable. Related Reading: Crypto Fear And Greed Index Barrels Toward Extreme Greed Again As Bitcoin Price Clears $101,000, Is This Good News? Adding to the turbulence, the analyst revealed that political and corporate influences have been dictating the crypto market. He underscored that Eric Trump had publicly supported buying Bitcoin and Ethereum during dips, aligning with events like Ethereum’s February 3 recovery and Bitcoin’s rebound on February 25. While the market experiences flash crashes and instability, MicroStrategy continues to accumulate Bitcoin. The analyst revealed that the company had also contributed to the polarization of Bitcoin due to its unending accumulation trend. While the company buys more Bitcoin, MSTR stocks continue to fall, marking a 45% decline from their high on November 20. Featured image from Unsplash, chart from Tradingview.com
Bitcoin's stumble begs the question asked during the last bear market: Is there a point at which Michael Saylor would be forced to liquidate part of the company's near-500,000 BTC stack?
The premium given to the company’s massive bitcoin holdings will exist as long as investors believe it will continue to increase the amount of its bitcoin held per share.
Shares of Strategy (NASDAQ: MSTR) have dropped by over 55% from the November 24 high at $543 to around $250. With the software intelligence firm now holding approximately 499,096 Bitcoin—worth around $44 billion at current prices—market participants are wondering whether the company could ever face a forced liquidation of its massive Bitcoin treasury. On Tuesday, analysts from The Kobeissi Letter (@KobeissiLetter) took to X to provide a comprehensive thread analyzing this scenario. Here’s what they had to say: “The MicroStrategy liquidation: As MicroStrategy, MSTR, falls over -55%, many are asking about ‘forced liquidation.’ The company now holds $44 BILLION worth of Bitcoin, could they be forced to sell it? Is liquidation even possible?” Is A Forced Bitcoin Liquidation Possible? According to The Kobeissi Letter, MicroStrategy’s Bitcoin holdings total approximately 499,096 BTC, currently worth $43.7 billion. The firm’s average cost basis sits around $66,350 per Bitcoin. This naturally raises concerns about what happens if Bitcoin’s price were to drop significantly below MicroStrategy’s average entry point. “Let us begin by stating that this isn’t the first time liquidation is mentioned. MSTR has been buying Bitcoin for years and there have been MULTIPLE bear markets since then. This includes the 2022 bear market when Bitcoin fell from ~$70K to ~$15K. Is this time different?,” the analysts write. Related Reading: Market Signals Point To Caution: Bitcoin’s 3-Day Chart Shows Potential Sell Alert Critically, MicroStrategy’s operations rely on raising capital—often through convertible notes—to buy more Bitcoin. The Kobeissi Letter points out that MicroStrategy currently carries about $8.2 billion in total debt for its $43.4 billion Bitcoin holdings, representing a roughly 19% leverage ratio. Much of this debt is held in convertible notes maturing around 2028. “Just about the only way a ‘forced liquidation’ occurs if there is a ‘fundamental change’ at the company. This COULD require MSTR to liquidate Bitcoin holdings if an early redemption is called on the notes,” the experts from The Kobeissi Letter argue. A “fundamental change” could include corporate bankruptcy, or a vote by shareholders to dissolve the company—both scenarios that The Kobeissi Letter stresses are remote under the current structure. Michael Saylor, MicroStrategy’s Executive Chairman and prominent Bitcoin advocate, holds 46.8% of the company’s voting power, meaning he could effectively block decisions leading to liquidation. Related Reading: Bitcoin Crashes: Experts Warn Of 6-Month Slump To $73,000 Despite the steep share price decline, The Kobeissi Letter suggests that an outright forced liquidation is “highly unlikely.” The structure of the convertible notes and MicroStrategy’s ability to raise capital give the firm significant flexibility. Even so, if Bitcoin were to experience a protracted and severe price drop—well below its current levels—MicroStrategy might face challenges in servicing its debt and raising fresh capital: “However, what if these convertible bonds remain below the conversion price at maturity, beginning in 2027+? For this to happen, Bitcoin would need to fall well over 50% from current levels and remain there.” Michael Saylor has repeatedly brushed off the liquidation scenario. According to The Kobeissi Letter: “Michael Saylor was asked about liquidation recently. His answer was that even if Bitcoin fell to $1, they still would not get liquidated. They would ‘just buy all of the Bitcoin.’ While this sounds good in theory, the convertible note holders cannot be forgotten.” MicroStrategy’s business model—raising funds to buy Bitcoin, potentially driving the price higher, and then issuing new shares at a premium—depends on investor confidence. If shares continue to falter, or if Bitcoin dives well below MicroStrategy’s average entry price, the firm’s ability to attract capital could be severely tested: “We are now witnessing the first ‘bear market’ in MicroStrategy since it gained popularity in 2024. The question becomes: will investors continue to buy the dip here? Michael Saylor says ‘Bitcoin is on sale.’” However, with Saylor’s voting power and the long-dated convertible notes, a forced liquidation seems highly unlikely in the near term. At press time, BTC traded at $89,245. Featured image created with DALL.E, chart from TradingView.com
Strategy, previously known as MicroStrategy, is pushing ahead with its aggressive Bitcoin accumulation strategy. According to a Feb. 20 statement, the company plans to acquire an additional $2 billion worth of Bitcoin using proceeds from its latest convertible notes offering. At the same time, Japanese firm Metaplanet, a Strategy copycat, has reached a key milestone […]
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The last hurdle for MSTR to qualify for the S&P 500 is to achieve positive GAAP net income over the trailing 12 months.
The stock could be eligible for S&P 500 index inclusion once it adopts updated FASB accounting standards, the report said.
Strategy’s STRK is up 5% in pre-market trading, building on its 2% gain during its Nasdaq debut.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
Strategy (formerly known as MicroStrategy) has reported its largest quarterly Bitcoin acquisition to date, marking a significant expansion of its holdings in the fourth quarter of 2024. In the last quarter of 2024, the firm purchased 218,887 BTC, bringing its total holdings to 447,470 BTC as of Dec. 31. The company has made additional Bitcoin […]
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Strategy reported a net loss of $670.8 million for Q4 on Wednesday following a $1 billion impairment adjustment on its bitcoin holdings.
The company earlier on Wednesday changed its name to Strategy as its primary focus for some time has been bitcoin, not software.
The company fka MicroStrategy recorded total revenues of $120.7 million, down 3% from last year and missed estimates by about $3 million.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.