MicroStrategy Is Still Betting on a Bitcoin Comeback to Lift Beaten-Down MSTR Stock

Core Viewpoint - MicroStrategy is intensifying its Bitcoin acquisition strategy despite a significant decline in its stock price, which has dropped over 50% in the last six months [1] Group 1: Bitcoin Acquisition Strategy - The company acquired 10,624 Bitcoin for $962.7 million at an average price of $90,615 per coin, increasing total holdings to 660,624 Bitcoin valued at $49.35 billion [1] - This purchase signifies a return to aggressive buying after a period of smaller acquisitions due to adverse market conditions [2] Group 2: Funding and Financial Position - The recent acquisition was primarily funded through the sale of $928.1 million in common stock and an additional $34.9 million from preferred stock sales [2] - MicroStrategy has established a $1.44 billion cash reserve to manage dividend payments on preferred stock and interest on debt, indicating a shift in funding strategy [5] Group 3: Market Performance and Leadership - The stock hit a 52-week low of around $155 but has since recovered to $190, remaining below recent highs [4] - Executive Chairman Michael Saylor is actively promoting Bitcoin to sovereign wealth funds and institutional investors [4] Group 4: Investment Risks and Strategy Changes - MicroStrategy holds approximately 3.1% of the total Bitcoin supply, making it vulnerable to significant risks if market conditions worsen [6] - CEO Phong Le has acknowledged the possibility of selling Bitcoin under certain crisis conditions, marking a departure from the company's previous "never-sell" philosophy [7] - The company's mNAV is nearing the critical 0.9 danger zone, raising concerns about potential forced sales if stock value falls below Bitcoin holdings [7] Group 5: Preferred Securities - MicroStrategy has issued four preferred securities in 2025, raising $6.7 billion, with the largest being the U.S. IPO of the year [8] - These preferred instruments provide tax-deferred dividends as a return of capital, expected to continue for at least 10 years due to the company's negative taxable earnings profile from its Bitcoin strategy [8]