MicroStrategy changed its name to Strategy. It then detailed its 2025 plans.
Perhaps yesterday’s news convinced you that MicroStrategy, the company previously known as MicroStrategy, is all about bitcoin.
A bitcoin is featured in the orange Strategy logo “B.” After Wednesday’s close of the market, company leaders pledged to continue with their plan to increase, buy, and repeat.
The self-proclaimed bitcoin treasury company (and now a Nasdaq 100 stock) held 471,107 BTC, as of Feb. 2 — worth roughly $46 billion at that time. In 2024, it acquired 258,320 BTC for $22,1 billion (average). The average price per BTC is $85,447
On yesterday’s earnings call, Strategy CEO Phong Le reiterated the company’s 21-21 plan detailed in Q3 — raising $21 billion of equity and $21 billion from fixed income securities between 2025 and 2027. The company has been able to make progress faster than expected due “favorable market dynamics,” He made a note.
The capital-raising/BTC-buying ramp-up in Q4 was clear. The strategy raised $15 billion in equity and $3 billion by way of convertible debt. The company had already raised $10 billion in the 17 previous quarters, dating back to when it first adopted BTC as a treasury asset.
Le said that the company would shift its focus from 2025 on fixed income securities (i.e. convertible notes, preferred stock), Le said. The target leverage for the long term is 20%-30% of BTC value.
In a Thursday research note, Benchmark’s Mark Palmer pointed to Strategy upping its 2025 BTC yield target to at least 15% — up from the 6-10% figure it offered on the last earnings call.
Palmer, who is the CEO of Strategy, said that although it halted its BTC purchases last week (to quantify shareholder value generated by its Treasury Operations), this implies that Strategy will continue its BTC purchasing spree. “aggressively” BTC investments require a large amount of capital.
Palmer maintained his $650 price target on MSTR. The stock was trading around $326 at 1:30 pm ET.
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