Key Insights:
- MSTR stock trades near $295 as investors watch earnings and BTC.
- Strategy’s S&P rating highlights Bitcoin reliance and capital risks.
- Market watchers see possible gains if Bitcoin demand rises.
MicroStrategy (MSTR) stock gained new attention after S&P Global Ratings assigned a B- issuer rating with a stable outlook on Oct. 27, 2025.
The review looked at the company’s Bitcoin strategy, capital strength, and debt needs.
Investors are now asking if the stock could reach a new peak as BTC demand grows.
MSTR Stock Review Highlights Bitcoin Exposure
MSTR stock received the B- rating from the S&P Global Ratings in New York.
Notably, the stable outlook shows that the company has time before any debt is due. None of its debt will mature in the next 12 months.
The rating agency noted that the company has strong access to funding through stock, preferred equity, and convertible bonds.
The review points to the company’s Bitcoin strategy. It holds a long position in Bitcoin and a short position in U.S. dollars.
Most of its cash is moved into BTC after paying for software operations. This approach gives investors indirect exposure to Bitcoin.
Similarly, it also adds more risk because debt, interest, and dividends must be paid in dollars.
S&P said that negative total adjusted capital is a major issue. BTC assets are removed from equity in its method.
This leads to a negative capital figure. The company’s risk-adjusted capital ratio was deeply negative as of June 30, 2025. This is because earnings depend on the value of Bitcoin.
According to the publication released, the software unit does not generate strong cash flow. Cash from operations in the first six months of 2025 was negative $37 million.
Still, convertible debt creates another risk. MicroStrategy has just over $8 billion in total. About $5 billion is not near its conversion price.
The earliest maturity starts in 2028. If BTC falls during that period, the company might need to sell Bitcoin at low prices or change terms with lenders.
Preferred stock adds pressure. Dividends total more than $640 million per year.
These are funded with market activity, not earnings. This gives the company access to or the ability to delay payments.
However, doing so could give board seats to preferred holders and raise costs on one series. Instead, it works to raise capital to maintain payments.
MSTR Stock Price Reacts To Rating And Bitcoin Moves
MicroStrategy stock traded near $295 on Oct. 27, 2025. The share price rose about 2% as of session close.
Notably, the MSTR stock moved between $293 and $299.80 during the session. Trading volume stays active with the firm’s market cap standing near $84.88 billion.
Basically, the stock follows Bitcoin closely. Large rises in Bitcoin have lifted the share price in past years.
Interestingly, Strategy Inc. purchased 390 BTC at an average price of $111,053 for each coin. This made the stock increase by 3% when the news made the rounds.
This brought its total Bitcoin holdings to 640,808 BTC. The company has spent about $47.44 billion building this position over several years.
Still, analysts expect earnings for the third quarter on Oct. 30. Estimates show revenue near $116.7 million and a small net loss.
Can MicroStrategy Stock Reach A New All-Time High?
Strategy delivered strong performance over the last decade. Many investors use the MSTR stock to follow BTC moves without owning Bitcoin directly.
This demand has helped push returns sharply higher in years when Bitcoin gained value.
Notably, some analysts see potential for more growth. Price projections for 2025 range from $289 to $527.
Some market watchers tie future gains to higher Bitcoin prices. For example, with Bitcoin potentially billed to rise to $150,000 or more, MicroStrategy stock could move toward an ATH of $1,000 to $2,000 if premiums expand.
This is because the stock’s direction depends mostly on Bitcoin. Some experts also argue that access to financing also matters.
Based on the current factors, the company plans to keep buying Bitcoin when it can raise capital.
Source: https://www.thecoinrepublic.com/2025/10/28/microstrategy-stock-upgraded-to-b-will-mstr-stock-break-new-ath-soon/
