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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NEGATIVE IMPACT
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