MSTR Expands Bitcoin Focus: Can STRD Offering Deliver Results?

Core Insights - MicroStrategy (MSTR) has announced a $4.2 billion at-the-market offering of its 10% Series A Stride Preferred Stock (STRD), reinforcing its position as the largest corporate holder of Bitcoin with over 597,000 BTC valued at more than $63 billion as of July 7 [1][9] Company Strategy - The company aims for a 25% Bitcoin yield and $15 billion in Bitcoin dollar gains, an increase from previous targets of 15% and $10 billion [3][9] - MSTR's disciplined capital raising approach through preferred equity offerings is a key catalyst for its strategy [4] Market Performance - MSTR shares have surged 36.7% year to date, outperforming the Zacks Computer – Software industry's growth of 16.4% and the broader Zacks Computer and Technology sector's return of 7% [7][9] Competitive Landscape - MARA Holdings (MARA) is the second-largest corporate holder of Bitcoin with 48,000 BTC as of April 2025, trading at a more attractive price/book ratio of 1.58X compared to MSTR's 3.36X [5] - Riot Platforms (RIOT) is another major Bitcoin miner that raised $500 million via convertible notes to expand its BTC holdings, focusing on physical AI compute infrastructure alongside its crypto mining operations [6] Financial Estimates - The Zacks Consensus Estimate for MSTR's 2025 loss is pegged at $15.73 per share, indicating a steep year-over-year decline of 134.08% [14]