Strategy (MSTR) Announces Upcoming Nasdaq Listing for Convertible Preferred Stock
Disclaimer: The analyst who authored this report holds shares in Strategy (MSTR).
Strategy, formerly known as MicroStrategy, has announced that its convertible preferred stock, designated as Strike (STRK), is anticipated to be listed on the Nasdaq exchange this Thursday. This information was highlighted in a slide during the company’s recent earnings presentation.
During the fourth-quarter earnings report, which was released after market hours on Wednesday, Strategy revealed some significant updates. The Tysons Corner, Virginia-based firm reported a loss of $3.03 per share. Notably, the company opted not to adopt the Financial Accounting Standards Board (FASB) rules, which would have mitigated a substantial impairment loss of $1 billion. However, they indicated that these rules are set to be adopted in the current quarter.
Among the new performance metrics introduced, a key indicator is the projected $10 billion gain in bitcoin (BTC) by the year 2025. To date, the company has already achieved a $1.24 billion gain this year. Another critical performance indicator is the bitcoin yield, which is set at 15%; year-to-date, the yield stands at 2.9%.
As part of its ongoing financial strategies, Strategy has utilized approximately $17 billion of its $21 billion at-the-market (ATM) equity program. In the earnings presentation, the company noted that these share sales represented merely 2.9% of the total cumulative trading volume. Interestingly, the period from November 11 to 15 marked the highest share of total trade volume for any week, peaking at 7%.
Following these announcements, shares of Strategy saw a modest increase, rising 1.3% in pre-market trading.
