MicroStrategy’s shares fell 7.7% to $126.82 in afternoon trading, retracing from an intraday high of $135.96. The decline followed a $2 billion equity offering completed between August 17 and August 23, during which the company sold approximately 18.26 million shares through at-the-market offerings.
The proceeds from the raise were allocated to strengthen the company’s USD reserves and repurchase preferred shares. No portion of the funds was used to purchase additional Bitcoin, despite the stock’s historically strong correlation with the cryptocurrency’s price movements. Bitcoin itself retreated roughly 3% on the day, contributing to the pressure on MicroStrategy’s shares.
The stock had surged about 37% over the prior week from mid-August lows before entering overbought territory. The company’s shares remain well above the 52-week low of $81.81.
Broader equity markets also declined, with the NASDAQ down 0.6% and the S&P 500 off 0.3% on the day. Bernstein reduced its price target on MicroStrategy to $350 from $450 on August 26, citing valuation concerns. Around the same time, a company director disclosed a stock sale, though no further details were provided.
