MicroStrategy Inc (MSTR) experienced significant after-hours momentum on Friday, with shares advancing 8.9% to $133.88. This movement coincided with a roughly 4% increase in bitcoin, which traded near $68,841. Other cryptocurrency-related equities, including Coinbase and several mining companies, also posted substantial gains during the session.
Bitcoin Proxy and Market Context
The stock has become a prominent and highly liquid proxy for bitcoin exposure, often amplifying the digital asset's price swings. Friday's broader market rally was supported by softer-than-expected U.S. consumer price data for January, which bolstered investor expectations for potential Federal Reserve interest rate cuts later this year.
Preferred Stock Filing and Dividend Details
Separately, MicroStrategy submitted a free writing prospectus to the SEC for its "STRC" series of preferred stock. The marketing materials highlight an 11.25% annualized yield, payable monthly. The company notes that distributions are expected to be treated as a return of capital for U.S. tax purposes, which can defer tax liability by reducing an investor's cost basis. However, the filing clearly states that MicroStrategy retains the right to reduce the dividend, and the securities are not FDIC insured.
The board has declared a monthly cash dividend of $0.9375 per share for the STRC stock, payable on February 28 to shareholders of record as of February 15.
Recent Capital Activities and Bitcoin Acquisition
According to a recent SEC filing, the company sold approximately 616,715 Class A shares through an at-the-market offering, generating net proceeds of $89.5 million. These funds were used to purchase an additional 1,142 bitcoin for about $90 million. This acquisition brings MicroStrategy's total bitcoin holdings to 714,644 tokens as of February 8.
The company reported a substantial operating loss for the fourth quarter, primarily due to an unrealized loss on its digital assets following a shift to fair-value accounting. CEO Phong Le emphasized the company's continued focus on growing "Bitcoin Per Share" for common stockholders through its strategic initiatives.
