"Strategy Stock Plummets: Bitcoin's Volatility and the $21 Billion Offering"

Monday was a rough day for MicroStrategy (MSTR) investors as the company's stock took a significant hit. The decline can be attributed to two main factors: the announcement of a $21 billion at-the-market offering program for Series A preferred stock and the recent volatility in Bitcoin prices. Let's break down what's going on and what it means for investors.



The $21 Billion Offering Program

MicroStrategy announced before the market open on Monday that it had entered into a sales agreement to issue and sell shares of its 8% Series A perpetual strike preferred stock. The aggregate offering price for this program is up to $21 billion. The company plans to sell these shares over an extended period, with the net proceeds intended for general corporate purposes, including the acquisition of more Bitcoin.

This offering program provides MicroStrategy with a significant amount of capital, which can be used to bolster its Bitcoin holdings. As of March 9, 2025, the company and its subsidiaries held approximately 499,096 bitcoins, acquired for an aggregate purchase price of approximately $33.1 billion, or $66,357 per bitcoin. The additional capital from the offering program can further strengthen MicroStrategy's position as the largest corporate holder of Bitcoin.

However, the offering program may also face selling pressure due to the decline in the price of Bitcoin. Bitcoin was down about 1.5% over a 24-hour period, trading around $83,385 at the time of publication, and had declined about 10.5% over the past week. This volatility in Bitcoin prices can impact investor sentiment and the demand for MicroStrategy's stock, potentially affecting its share price.

The Impact of Bitcoin Volatility

MicroStrategy's stock performance is closely tied to the price of Bitcoin. The recent decline in Bitcoin prices has put selling pressure on MicroStrategy's shares, which were down 8.37% at $263.14 at the time of publication on Monday. This correlation between Bitcoin's price movements and MicroStrategy's stock performance highlights the company's significant exposure to the cryptocurrency market.



The volatility of Bitcoin prices poses a risk to MicroStrategy's balance sheet. Critics have raised concerns that the company's balance sheet is overly dependent on the volatile king of cryptos. Despite these concerns, Michael Saylor, the chairman of MicroStrategy, has maintained a "Bitcoin or die" approach, believing that Bitcoin is the future of money and that the company's strategy will pay off in the long run.

What Does This Mean for Investors?

The recent decline in MicroStrategy's stock price and the volatility in Bitcoin prices present both risks and opportunities for investors. On one hand, the $21 billion offering program provides MicroStrategy with substantial capital for future investments, particularly in Bitcoin. On the other hand, the volatility in Bitcoin prices poses a risk to the company's balance sheet and its stock performance.

Investors should closely monitor the price of Bitcoin and MicroStrategy's stock performance in the coming weeks. If Bitcoin prices continue to decline, MicroStrategy's stock may face further selling pressure. However, if Bitcoin prices rebound, MicroStrategy's stock could see a significant rally.

In conclusion, Monday was a challenging day for MicroStrategy investors, but the company's aggressive Bitcoin acquisition strategy and the $21 billion offering program present both risks and opportunities. Investors should stay informed and be prepared to adjust their strategies as market conditions change.