MicroStrategy currently holds a 10% unrealized loss on its Bitcoin portfolio. The company's stock has fallen approximately 69% from its all-time high. Executive Chairman Michael Saylor intends to continue purchasing Bitcoin despite these paper losses.
The company recently suspended capital raising through its high-yield perpetual preferred stock (STRC). This suspension followed a lack of investor demand for the instrument. MicroStrategy previously used STRC to avoid shareholder dilution from equity issuance.
Analysts suggest a change in credit agency valuation of digital assets could upgrade MicroStrategy from junk to investment grade. This potential rating shift could provide the company access to institutional capital.