From Nasdaq

February 26, 2025 6:00 AM:

MicroStrategy (NASDAQ: MSTR) rebranded to Strategy, emphasizing its shift to holding Bitcoin. Stock surged 1,800%, now worth $41 billion in Bitcoin. Despite $65 billion market cap, Strategy’s revenue fell 6.6% in 2024. Company’s debt rose to $7.2 billion. Strategy raised funds through debt and stock offerings, planning to buy more Bitcoin.

Strategy’s success tied to Bitcoin, holding 478,740 Bitcoins at $31.1 billion. Profit potential of $10 billion if Bitcoin reaches $87,000. Concerns over revenue decline and debt increase. Company raised $563 million through preferred stock offering. Potential to buy more Bitcoin with at least $7 billion in funding.

Risks for Strategy include Bitcoin price fluctuations affecting debt repayment. Company’s revenue loss and increasing debt raise concerns. Strategy’s stock could face further dilution, with estimated 289.4 million diluted shares by 2032. Company’s net debt at $7.2 billion, surpassing market cap. Holding Bitcoin could overshadow core business performance.

Before investing in Strategy, consider risks of Bitcoin price volatility and debt repayment. Company’s stock valuation reflects significant Bitcoin holdings. Potential for further dilution and debt escalation. Investors may find better returns through direct Bitcoin investment or ETFs. Evaluate Strategy’s long-term sustainability and growth prospects.

Read more at Nasdaq: Is MicroStrategy a Buy Now?