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MicroStrategy (NasdaqGS:MSTR) Gains 13% Over Last Month With New US$722M Offering

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MicroStrategy recently declared a preferred dividend of $1.24 per share and appointed new co-lead underwriters for its $722 million fixed-income offering. Despite the broader market experiencing declines, including the S&P 500 and Nasdaq index posting their worst month since 2022, MicroStrategy's shares rose by 13% last month. This contrasts the broader tech sector that saw declines amid economic concerns and new tariff announcements. The company’s share performance may be partly attributable to its strategic financial moves in a challenging market, supporting investor confidence despite broader market volatility.

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NasdaqGS:MSTR Revenue & Expenses Breakdown as at Mar 2025
NasdaqGS:MSTR Revenue & Expenses Breakdown as at Mar 2025

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MicroStrategy's total shareholder return over the past five years was an extremely large 2394.27%. This remarkable performance contrasts with its current financial setbacks, as the company exceeded the broader US market, which saw a much smaller return of 5.8% in the past year. Several key initiatives have influenced this long-term return. Notably, in March 2024, MicroStrategy announced plans to acquire more Bitcoin through proceeds from a US$600 million offering, embracing cryptocurrency as a part of its balance sheet strategy. Additionally, its recent inclusion in the NASDAQ-100 Index in December 2024 may have also bolstered investor interest.

Product innovation has played a role too, with continuous updates to the MicroStrategy ONE platform, such as the incorporation of generative AI features in January 2025. Despite challenges, such as increasing net losses and shareholder dilution over the past year, these factors have likely maintained investor confidence in the company's future outlook, supporting its long-term return.

Examine MicroStrategy's earnings growth report to understand how analysts expect it to perform.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.