TLDR
- MicroStrategy (now called Strategy) is planning to raise $21 billion through “perpetual strike preferred stock” to buy more Bitcoin
- The company’s stock fell over 16% on Monday as Bitcoin also declined
- Strategy already owns nearly 500,000 bitcoins worth approximately $40 billion
- President Trump’s “Strategic Bitcoin Reserve” executive order disappointed investors as it will use seized assets rather than new purchases
- This marks the fourth consecutive Monday with stock declines for the company
Strategy, formerly known as MicroStrategy, saw its stock plummet by 16.68% on Monday, March 10, 2025, closing at $239.27 per share.
The steep decline came as the company announced plans to raise up to $21 billion to purchase additional Bitcoin, despite recent weakness in cryptocurrency markets.
The company revealed its intention to issue “perpetual strike preferred stock” with no expiration date. These special shares will offer investors an 8% dividend and the option to convert them into regular shares at any time.
Strategy already holds nearly 500,000 bitcoins valued at approximately $40 billion. The company purchased much of this reserve using leverage.
Monday’s decline follows a pattern for the stock, which has fallen at the start of the week for four consecutive weeks. The pattern often correlates with Bitcoin price movements over the weekend when traditional markets are closed.
Bitcoin fell to $82,400 early Monday, representing a 1.5% decline over the previous 24 hours. The cryptocurrency had been trading above $90,000 on Friday ahead of the first White House crypto summit.
The summit, however, disappointed crypto investors. While President Donald Trump signed an executive order establishing a “Strategic Bitcoin Reserve,” the announcement clarified that the reserve would consist of already seized crypto assets.
The government has no immediate plans to purchase additional Bitcoin, contrary to what many investors had hoped. This clarification contributed to the weakness in the broader cryptocurrency market.
Strategy did not purchase any Bitcoin during the week of March 3 to March 9, according to a Monday update. This marks the second consecutive week without Bitcoin acquisitions by the company.
The stock’s volatility has been remarkable recently. Strategy shares have moved more than 5% in either direction on all but two trading days over the past two weeks.
Other Crypto Stocks
Other crypto-related stocks also suffered on Monday. Cryptocurrency exchange Coinbase Global fell 17.58%, while trading platform Robinhood Markets dropped 19.79%.
The company’s ambitious capital raise comes at a time when its core business intelligence and software sales have stagnated. Strategy now operates primarily as a Bitcoin investment vehicle.
The latest move to double its already massive reserve of Bitcoin using preferred shares will lead to dilution for existing shareholders. It also means that the company must pay substantial dividends, even as it operates in the red.
Strategy’s market capitalization stands at approximately $62 billion as of March 10, 2025. The stock is down from previous highs but remains a popular option for investors seeking exposure to Bitcoin through traditional markets.
Investors are closely watching Strategy’s Bitcoin purchasing activity. The Monday filings revealing the company’s weekly Bitcoin purchases have become closely monitored events in financial markets.
The extreme volatility of the stock reflects the speculative nature of Strategy’s business model, which is now almost entirely dependent on Bitcoin price movements.
