Strategy Stock Plummets 16.68% on $21 Billion Bitcoin Raise

Strategy, formerly known as MicroStrategy, experienced a significant drop in its stock price on Monday, March 10, 2025, closing at $239.27 per share, a decline of 16.68%. This plummet came as the company announced plans to raise up to $21 billion through the issuance of "perpetual strike preferred stock" to purchase additional Bitcoin. These special shares will offer investors an 8% dividend and the option to convert them into regular shares at any time.

The company already holds nearly 500,000 bitcoins valued at approximately $40 billion, much of which was purchased using leverage. The recent decline in the stock price follows a pattern of weekly drops, with the stock falling at the start of the week for four consecutive weeks. This 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. However, the summit disappointed crypto investors as President Donald Trump signed an executive order establishing a “Strategic Bitcoin Reserve,” which will 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, marking the second consecutive week without Bitcoin acquisitions by the company. The company’s ambitious capital raise comes at a time when its core business intelligence and software sales have stagnated, and it 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 and 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, with the Monday filings revealing the company’s weekly Bitcoin purchases becoming closely monitored events in financial markets. The extreme