Cruz VelezMicroStrategy’s Bold Billion-Dollar Bitcoin Play Sends Shockwaves—But Are Investors Paying Too Much?
MicroStrategy boosts its share sale to nearly $1B to buy more Bitcoin, but investors might be overpaying. Here’s what you need to know in 2025.
- $1 billion — MicroStrategy’s planned capital raise for more BTC
- 112% — Share price premium over the company’s Bitcoin and business value
- 9,633 BTC — Potential new Bitcoin stash if purchase moves ahead
- $103,800 — Current Bitcoin price as of June 2025
MicroStrategy is turning heads again. The business intelligence giant, led by the unstoppable Michael Saylor, just multiplied its share offering by four—from $250 million to nearly $1 billion. All those dollars? They’re headed straight for more Bitcoin, cementing MicroStrategy’s role as the world’s biggest corporate Bitcoin whale.
But this new mega-bet raises a burning question: Are investors getting the deal they expect—or paying a nosebleed premium just to ride the Saylor wave?
What’s MicroStrategy Actually Doing With All That Cash?
This isn’t just another Wall Street capital raise. MicroStrategy plans to issue 11,764,700 shares of its 10% Series A Perpetual Stride Preferred Stock at $85 a pop. After fees, the company expects about $979.7 million in cash. The stated plan? General corporate purposes—mostly buying more Bitcoin and boosting liquidity.
Let’s crunch the numbers. With Bitcoin hovering at $103,800, MicroStrategy could acquire around 9,633 more BTC. Contrast that with its previous buy: 705 Bitcoin for $75.1 million, announced just this June.
Why Are Investors Paying 112% Above “Fair Value”?
Here lies the twist: Shares of MicroStrategy aren’t just tracking Bitcoin—investors are paying a jaw-dropping 112% premium above the company’s net asset value, according to research from VanEck. Put simply, every $1 of actual assets costs investors $2.12.
Why the markup? Many expect MicroStrategy to keep stacking Bitcoin, bet on regulatory advantages, or plan to cash in on speculative hype. But the math is sobering: The company’s stock doesn’t offer extra “leverage” over Bitcoin’s price. If Bitcoin drops 10%, so do the shares; if it jumps 20%, the shares follow. No magic multiplier here.
And this isn’t even the wildest premium—Japanese investment firm Metaplanet’s BTC exposure went as high as $600,000 per Bitcoin-equivalent share, a sixfold markup.
Q: Is MicroStrategy Stock a Smart Way to Buy Bitcoin?
A: Not for newbies, warn analysts at 10x Research. Unless you deeply understand company valuation, you could pay double for the same Bitcoin exposure you’d get by simply buying Bitcoin directly—on Coinbase or a regulated exchange.
Investors once tolerated premiums for “synthetic” crypto exposure. But in 2025, with U.S.-regulated spot Bitcoin ETFs available on Nasdaq and NYSE, the case for paying twice as much to own shares is looking thin.
How to Avoid the New Crypto Stock Premium Trap in 2025
1. Check the NAV (Net Asset Value): Before buying any “crypto stock,” compare the market price to the value of the assets it holds.
2. Understand the Risks: No bonus leverage means no outperformance—if Bitcoin goes down, so does the stock, at the same or greater rate.
3. Consider Direct Alternatives: Buying Bitcoin directly or purchasing a spot Bitcoin ETF can give you purer, more cost-effective exposure.
4. Watch For Hype: Stocks like MicroStrategy and Metaplanet have huge fan bases. Don’t let FOMO override financial logic.
Q: What Should Savvy Investors Do Next?
Analyze. Compare. Then act. The digital asset playing field in 2025 is wider than ever—don’t overpay for the same ticket.
Ready to level up your Bitcoin exposure the smart way?
- ☑ Compare share price premiums with underlying asset values
- ☑ Monitor regulatory changes and ETF developments
- ☑ Choose direct BTC, a spot ETF, or crypto stock with eyes wide open
- ☑ Stay tuned to breaking crypto news on Cointelegraph and CNBC
Don’t get caught in the premium trap—make your move with clarity and confidence!
