Why MicroStrategy’s Massive $1B Bitcoin Stock Play Could Be Riskier Than Investors Realize
MicroStrategy ramps up its stock offering to nearly $1B—aiming to buy thousands more bitcoins as premiums soar past 100%.
- $1B—MicroStrategy’s new stock offering targets nearly four times its prior plan
- +112%—The current premium over fair bitcoin value in company shares
- 9,600+—Approximate number of bitcoins they may buy at today’s prices
- $103,800—Current price of one bitcoin (June 2025)
MicroStrategy—helmed by crypto evangelist Michael Saylor—just turbocharged its bitcoin bet. The company announced it will issue a whopping 11,764,700 shares of its new 10% Series A Perpetual Preferred Stock, aiming to raise close to $1 billion. That’s four times more than their previous $250M plan, with almost every dollar channeled into one thing: buying bitcoin.
A Corporate Crypto Frenzy
This isn’t just another corporate investment. Saylor and his team have become the largest publicly-traded bitcoin treasury, outpacing both Wall Street rivals and even some nations. With the new influx of cash, MicroStrategy could buy over 9,600 more bitcoins—dwarfing their last purchase of just 705 coins in early June.
But as the frenzy grows, so does the risk for ordinary investors.
Forbes, CNBC, and Bloomberg have all spotlighted Saylor’s bold moves—and the sky-high premiums now attached to his company’s shares.
Q: Why Are MicroStrategy Shares Trading with a 112% Premium?
Investors eager to ride the bitcoin wave via traditional stocks are pouring into MicroStrategy shares. But recent data shows they’re paying more than double what the company’s bitcoin and software business are worth together. VanEck analysts reveal this massive 112% premium comes from hopes of future crypto accumulation, speculative hype, and perceived regulatory advantages.
For context, if you buy a $1 share of MicroStrategy, you’re only getting $0.47 of actual bitcoin and software value. The rest? Pure speculation.
Q: Isn’t This Leverage or Extra Profit Potential?
Many believe buying MicroStrategy shares means getting “leverage”—the chance for shares to outperform bitcoin’s price swings. But analysts caution that’s a myth. Historically, the stock rises and falls in lockstep with the spot price of bitcoin. If bitcoin climbs 20%, expect a similar move from the shares. If it tumbles, the losses mirror it. There’s no turbocharged upside—just a steeper buy-in price.
How Does This Compare Globally?
MicroStrategy’s premium looks tame next to some international players. Take Japan’s Metaplanet—where investors recently paid SIX TIMES the market price for indirect bitcoin exposure via shares. Still, the lesson remains: without proper knowledge, retail investors risk major overpayment for the same digital asset they could buy directly.
For crypto market analysis, check out major resources like CoinDesk and industry insights at Yahoo Finance.
How to Protect Yourself: Should You Buy Shares or Actual Bitcoin?
Smart investing means understanding net asset value (NAV)—the real, underlying worth of all company reserves. With MicroStrategy trading at a giant premium, every $2.12 you spend only gets you $1 of actual assets. Unless you need the regulatory convenience of shares, direct bitcoin purchases on trusted exchanges like Coinbase may make more sense for many.
Q: What Should Investors Watch Next?
– Updates on MicroStrategy’s new bitcoin purchases after the $1B raise
– Fluctuations in premium levels—will the market cool off or get even hotter?
– Bitcoin’s own volatility, which directly impacts share performance
Bottom Line: Don’t Let FOMO Drive Your Crypto Bets—Know What You’re Really Buying.
Crypto Stock Investing Checklist
- ✔️ Check the company’s NAV before buying shares tied to bitcoin
- ✔️ Compare stock premiums to buying bitcoin directly
- ✔️ Assess if you want exposure for regulatory or tax reasons
- ✔️ Never blindly follow hype—analyze the risk and reward, especially with share premiums over 100%
- ✔️ Keep up to date with trusted finance news and official company filings
