MicroStrategy stock dropped 12.6% due to capital raise for Bitcoin accumulation

From Nasdaq Corporation

March 10, 2025 11:49:00 AM:

Shares of MicroStrategy Inc (NASDAQ: MSTR) dropped 12.6% amid a broader market decline. The company, now known as Strategy, announced a $21 billion capital raise for more Bitcoin accumulation. President Trump’s executive order for a “Strategic Bitcoin Reserve” did not boost the market as expected, leading to increased weakness in crypto.

MicroStrategy’s move to raise funds through preferred shares for Bitcoin reserves adds risk for investors. With high leverage, dilution for existing shareholders, and a need to pay dividends despite operating losses, caution is advised. The Motley Fool’s Stock Advisor team did not include Strategy in their top 10 stock picks, emphasizing potential downside.

Read more at Nasdaq, Inc.: Why MicroStrategy Stock Is Plummeting Today