MSTR Sold Stock - Impacting ARB Cloud (Patreon)

Michael Saylor's MicroStrategy (MSTR) disclosed that it's raised $46.6 million via share sales since it entered agreement with underwriter Cowen and Company in September 2022 for the sale of up to $500 million in common stock.

The good news in the filing today - they are using proceeds towards repayment of debt, including its term loan with Silvergate Bank (SI). That loan – for $205 million and taken out in March 2022 – is floating rate, and has thus gotten more expensive as the U.S. Federal Reserve has hiked short-term interest rates.

The Silvergate loan matures March 2025 and does have a prepayment penalty, but that penalty in March 2023 drops by half to just 0.25% of the principal balance being repaid.

This explains why MSTR is not above $300 given the BTC Price.

$273 is the new target and we are $4 away.  Watch the trend and sell pressure volumes to see if they are selling more. 

I have tweaked my settings to allow for the debt repayment. Intrinsic Value now 250M up from 200M.