MSTR Expands Bitcoin Focus: Can STRD Offering Deliver Results?
MicroStrategy MSTR, doing business as “Strategy, has taken another major step in deepening its Bitcoin strategy. On Monday, the company announced a $4.2 billion at-the-market (ATM) offering of its 10% Series A Stride Preferred Stock (STRD), reinforcing its role as the world’s largest corporate holder of Bitcoin, with more than 597,000 BTC valued at more than $63 billion as of July 7.
Bitcoin, the most popular cryptocurrency, has been soaring high due to increasing acceptance as a non-sovereign asset, as well as higher institutional and corporate adoption. The liberal policies of U.S. President Donald Trump have been benefiting Bitcoin and other crypto assets. An executive order by President Trump that directed a working group to study and propose changes to cryptocurrency regulations bodes well for crypto enthusiasts.
MSTR benefits from increasing bitcoin yield, 13.7% year to date (as of April 28, 2025), keeping the company on track to reach full year target of 15%, which is now raised to 25% and bitcoin dollar gain target to $15 billion (up from initial target of $10 billion). Bitcoin gains in dollar terms were $4.1 billion in the first quarter of 2025 and $5.8 billion as of April 28, 2025.
The company’s disciplined approach to capital raising through preferred equity offerings — Strike (8% convertible preferred is trading with an effective yield of roughly 9%) and Strife (10% fixed coupon perpetual preferred) — is a key catalyst.
MSTR Dominance Challenged by Rising BTC Rivals
MARA Holdings MARA is a leading U.S. Bitcoin miner currently the second-largest corporate holder behind MicroStrategy, with 48,000 BTC as of April 2025. MARA trades at a more attractive price/book ratio of 1.58X compared to MSTR’s 3.36X. MARA capitalizes on cost-effective mining to boost liquidity and prioritizes R&D to stay ahead in a competitive landscape. MARA’s innovation strategy drives long-term asset growth and strengthens its leadership in Bitcoin mining.
Riot Platforms RIOT an another major publicly traded Bitcoin miner, is vertically integrated with mining and hosting operations. In December 2024, it raised $500M via convertible notes to expand BTC holdings. Unlike MicroStrategy’s AI-driven analytics focus, RIOT is pivoting toward physical AI compute infrastructure, positioning itself as an emerging force in AI hardware alongside its core crypto mining business.
MSTR’s Price Performance, Valuation & Estimates
Shares of Strategy 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%.
Story ContinuesMSTR YTD Price Return Performance
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MSTR has a Value Score of F. It is currently trading at a Price/Book ratio of 3.36X compared with the sector’s 10.2X.
MSTR Forward 12-Month Price/Book Ratio
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The Zacks Consensus Estimate for MSTR’s 2025 loss is currently pegged at $15.73 per share, unchanged over the past 30 days. The estimate indicates a steep year-over-year decline of 134.08%.
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MSTR stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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