MicroStrategy strengthens capital structure, Mizuho maintains "Outperform" rating and target price of $484

Investment bank Mizuho Securities recently reiterated its “Outperform” rating on MicroStrategy (MSTR) and maintained its target price of $484 per share. This move followed a Q&A session between the firm’s analyst Dan Dolev and MicroStrategy CFO Andrew Kang, during which key information regarding the company’s capital operations strategy and Bitcoin asset management direction was revealed.

Successfully Raised $1.44 Billion to Cover 21 Months of Preferred Stock Dividends

MicroStrategy recently raised $1.44 billion to strengthen its US dollar reserves and ensure that preferred stock dividend payments for the next 21 months can be made without tapping into Bitcoin assets. This capital will also reinforce the company’s overall financial stability, allowing it to maintain capital flexibility without selling its Bitcoin holdings.

(Bitcoin Reserve Pioneer MicroStrategy Takes Action: $1.44 Billion Safeguards Dividends—Are Investors Reassured?)

The company stated that it will expand its reserves when the market per-share net asset value (mNAV) exceeds certain thresholds and plans to avoid issuing new convertible bonds, instead favoring perpetual preferred stock as its main financing instrument. This means MicroStrategy’s capital strategy will revolve around mNAV, with flexible adjustments to its capital structure and financing approach.

CFO: Bitcoin Is Only a Last Resort, Operations Sustainable for Over Three Years

Andrew Kang stated during the session that if Bitcoin prices remain at current levels, the company can continue operating for more than three years without selling any Bitcoin. He emphasized that selling Bitcoin would be a “last resort,” demonstrating the company’s commitment to a long-term holding strategy.

Bitcoin Monetization Options Still Under Evaluation

Kang added that methods such as Bitcoin lending and covered calls are still in the “exploratory stage” and have not yet become official strategies. Overall, the company’s future capital operations will continue to focus on mNAV, making prudent adjustments.

This article, MicroStrategy Strengthens Capital Structure, Mizuho Maintains “Outperform” Rating and $484 Target Price, first appeared on Chain News ABMedia.