B. Riley Puts $175 Value on MicroStrategy; STRC Sale Tops $300M
MicroStrategy received a Buy initiation from B. Riley with a $175 price target, citing its 738,731-bitcoin treasury at a 1.2× NAV multiple versus a 3.4× peak. The company also sold $300 million in STRC preferred equity to fund an estimated 1,420-bitcoin purchase and amended its sales agreement for faster capital raises.
1. B. Riley Initiates Coverage on MicroStrategy
B. Riley launched coverage with a Buy rating and set a $175 price target on MicroStrategy, highlighting the company’s 738,731-bitcoin treasury as the largest corporate holding. The firm notes shares trade at 1.2× net asset value, down from a 3.4× peak in 2024, framing the valuation gap as a buying opportunity.
2. Record $300M STRC Preferred Equity Issuance
MicroStrategy executed its largest STRC preferred equity sale to date, raising $300 million in a single day. Proceeds financed an estimated 1,420-bitcoin purchase, while the dividend rate on STRC was recently raised to 11.5% with monthly cash distributions tied to its $100 par value.
3. Enhanced Capital Raising Flexibility
The company amended its Omnibus Sales Agreement to allow multiple agents to sell the same class of securities during pre-market and after-hours sessions. This change removes timing constraints on block sales and could accelerate future capital raises to support ongoing bitcoin accumulation.