As per Coinotag, MicroStrategy's aggressive at-the-market equity offerings and convertible debt have increased shares outstanding by 20% year-to-date, fueling stock dilution and a 70% decline from its all-time high. The company sold $700 million in stock last week, intensifying concerns over leverage and shareholder value erosion. Analysts warn that MicroStrategy’s market value of $45 billion now trails its $60 billion in Bitcoin holdings, raising leverage risks. MSCI is set to review the firm’s inclusion in its indexes in January, with potential exclusion risking $1.6 billion in outflows. The stock has dropped 36% year-to-date, far outpacing Bitcoin’s 3.6% decline.
MicroStrategy Faces Stock Dilution and MSCI Index Review Amid Bitcoin Strategy
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Summary
MicroStrategy’s stock faces pressure from aggressive equity sales and convertible debt, pushing shares up 20% year-to-date and eroding value. The firm sold $700 million in stock last week, deepening concerns over leverage and support and resistance levels. With Bitcoin holdings valued at $60 billion and a market cap of $45 billion, value investing in crypto strategies are under scrutiny. MSCI will review its index inclusion in January, with potential exclusion risking $1.6 billion in outflows. The stock is down 36% year-to-date, compared to Bitcoin’s 3.6% drop.
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