Why MicroStrategy Stock Is Down Today
Portfolio Pulse from Erica Kollmann
MicroStrategy Incorporated (NASDAQ:MSTR) announced the pricing of its $525 million offering of 0.875% convertible senior notes due 2031, with an option to purchase up to an additional $78.75 million. The offering, intended for acquiring more Bitcoin and general corporate purposes, was upsized from $500 million. As of March 10, MicroStrategy held approximately 205,000 bitcoins. The company's stock has an average 1-year price target of $1,387.00, indicating a potential downside, with shares currently trading up 0.49% at $1,685.09.
March 15, 2024 | 3:30 pm
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MicroStrategy's upsized offering of convertible senior notes and its intention to use the proceeds for Bitcoin acquisition could influence investor sentiment. The stock's current trading price is above the average 1-year price target, suggesting potential downside.
The upsized offering indicates a significant investment in Bitcoin, which could be seen as risky given Bitcoin's volatility. The stock trading above its average 1-year price target suggests that it might be overvalued, leading to potential short-term downside.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100