MicroStrategy Raises $95M for 884 Bitcoin; Stock Nears Floor
MicroStrategy, a leading Bitcoin holder, raised nearly $95 million through at-the-market stock offerings and preferred-share issuances to acquire a combined 884 Bitcoin, boosting its treasury to over 641,600 BTC. The firm bought 397 BTC at an average price of $114,771 and then added 487 BTC via ATM programs using STRC “Stretch” and STRF “Strife” preferred shares. Despite the common stock’s drop and its mNAV ratio falling to roughly 1×—well below the 2.5× threshold for equity-funded purchases—management maintained its equity-funded accumulation strategy. MSTR shares rallied 3.2% premarket after short-seller Jim Chanos covered his position, suggesting the stock may have found a floor as Bitcoin climbed above $106,000. Traders should monitor mNAV ratio levels, preferred-share offerings, and ATM activity as key indicators of future capital raises and Bitcoin demand.
Bullish
In the short term, this news is bullish as MicroStrategy’s equity-funded Bitcoin purchases signal ongoing demand, and the stock’s gain after Jim Chanos covered his short suggests renewed investor confidence and a potential support level. Over the long term, continued at-the-market offerings and preferred-share issuances—despite a low mNAV ratio—demonstrate the firm’s commitment to expanding its Bitcoin treasury, likely maintaining upward pressure on Bitcoin prices as market participants anticipate further capital raises and accumulation activity.