Strategy Inc. (NASDAQ:MSTR) is one of the best multibagger stocks to invest in right now. The company positions itself as the world’s largest Bitcoin Treasury Company, a strategy shaped by CEO Michael Saylor’s view that bitcoin will replace gold as a non-governmental store of value. As of the end of July, the company held 628,791 bitcoins on its balance sheet, valued at about $70 billion at current prices. TD Cowen Reaffirms Buy on Strategy (MSTR), Trims Target to $640 Photo by Jievani Weerasinghe on Uns ...

Core Viewpoint - A shareholder lawsuit against Strategy, a major Bitcoin treasury firm, has been dropped, following a similar dismissal of another class-action lawsuit regarding misleading statements about accounting practices and profitability [1][2]. Group 1: Legal Issues - The recent lawsuit was filed by shareholders Abhey Parmar and Zhenqiu Chen, alleging breaches of fiduciary duties and gross mismanagement [1]. - This dismissal follows another lawsuit filed in May, which also claimed the company misled shareholders about the impact of new accounting rules on profitability [2]. - Multiple law firms have filed lawsuits against the company this year, alleging securities fraud related to misleading Bitcoin investment statements [2]. Group 2: Company Overview - Strategy, formerly known as MicroStrategy, is the largest corporate holder of Bitcoin, with 638,460 digital coins valued at $72.5 billion at current prices [3]. - The company transitioned from selling data analysis software to becoming a Bitcoin treasury firm, allowing investors to buy shares of its Nasdaq-listed stock (MSTR) for cryptocurrency exposure [4]. - Co-founder Michael Saylor, who became interested in Bitcoin in 2020, advocates it as a superior means of storing value and protecting shareholder wealth [4]. Group 3: Stock Performance - Strategy's stock price has significantly increased from $14 at the time of its first Bitcoin purchase in August 2020 to $362, representing a 2,160% rise [5]. - The company has faced regulatory challenges in the past, including a settlement with the SEC in 2000 over allegations of overstating revenue and earnings [5][6].

Core Viewpoint - Certain cryptocurrency-related stocks have experienced significant gains, indicating a positive market sentiment towards the sector [1] Group 1: Stock Performance - Bit Digital (BTBT.US) has risen over 7% [1] - Bitmine Immersion Technologies (BMNR.US) has increased by more than 7% [1] - Strategy (MSTR.US) has seen a rise of over 1.7% [1] - Hut 8 (HUT.US) has gained more than 6.8% [1] - American Bitcoin (ABTC.US) has increased by over 2% [1]

Core Insights - Michael Saylor's company, now known as Strategy Inc, holds more Bitcoin than the cash reserves of several major tech companies, with 638,460 BTC valued at approximately $71 billion [1][2]. Holdings and Financials - Strategy Inc's Bitcoin holdings have reached 638,460 BTC, making it the fifth largest corporate treasury globally, surpassing Nvidia ($57 billion), Apple ($55 billion), Meta ($47 billion), and Tesla ($37 billion) [2]. - The company recently purchased an additional 1,955 Bitcoin for $217 million, raising its average cost basis to $73,880 per Bitcoin [3]. Performance and Market Position - Over the past three years, Bitcoin has provided Strategy Inc with a return of 1,308%, while its stock has decreased by 26% since July, currently trading at $330.30 [4]. - Despite meeting the technical requirements, Strategy Inc was not included in the S&P 500 index, with the slot going to Robinhood, indicating concerns about the company's all-Bitcoin treasury [4][6].

Group 1 - The recent trend in the cryptocurrency market involves notable figures from various industries joining boards of digital asset treasury companies, which focus on accumulating cryptocurrency [1][3] - Dan Ives, a prominent analyst from Wedbush Securities, has been appointed chair of a small publicly traded company aiming to enhance its balance sheet with cryptocurrency [1][3] - Eightco Holdings has raised $250 million through a private share offering to acquire Worldcoin, a cryptocurrency associated with the project backed by OpenAI cofounder Sam Altman [2] Group 2 - The digital asset treasury companies are attempting to stand out in a crowded market, with 209 companies planning to raise over $145 billion for crypto treasury strategies since January [5] - The concept of crypto hoarding was popularized by Michael Saylor of Strategy (formerly MicroStrategy), who added Bitcoin to his company's balance sheet in 2020, leading to a surge in its stock price as Bitcoin's value increased [6] - There is a growing trend of treasury companies not only focusing on Bitcoin but also on other cryptocurrencies like Ethereum, Solana, and XRP [7]

Core Viewpoint - The expectation of Federal Reserve interest rate cuts is influencing speculative behavior in financial markets, with investors hopeful for Strategy Inc. (MSTR) to reach new highs, although this may not materialize as anticipated [1]. Company Overview - Strategy Inc. (MSTR) is currently priced at $329.58, with a P/E ratio of 29.16 and a price target of $552.50. The stock has a 52-week range of $121.30 to $543.00 [2]. - The stock has experienced a decline of 16.5% over the past month, indicating a shift in market sentiment towards the company [8]. Market Sentiment and Valuation - The software industry has an average price-to-book (P/B) ratio of 11.1x, while Strategy's P/B ratio has fallen to 4.5x, suggesting the market is assigning a steep discount to the stock [9]. - The market's reluctance to pay a fair value for Strategy's book value, which is primarily composed of debt and cash from stock dilution, indicates a lack of confidence in the company's financial health [10]. Business Model Concerns - Strategy's business model has evolved from software services to a focus on Bitcoin investments, raising concerns about its sustainability and the risks associated with leveraging Bitcoin, a highly volatile asset [4][6]. - The company has been issuing stock to raise capital for Bitcoin purchases, which has transformed its stock into a leveraged Bitcoin vehicle, posing significant risks to investors [5][6]. Insider Activity - The CFO of Strategy, Andrew Kang, sold approximately $7.4 million worth of stock at $395 per share in August 2025, which may signal a lack of confidence in the company's future prospects [13]. Analyst Ratings - Despite a Moderate Buy rating among analysts, Strategy Inc. is not included in the list of top stocks recommended by leading analysts, suggesting that there are better investment opportunities available [14].

Core Insights - The company, Strategy, has accumulated nearly 640,000 Bitcoin valued at over $70 billion in just 5 years, establishing itself as the world's first and largest Bitcoin treasury company [1] - Since launching its Bitcoin strategy in August 2020, the company has significantly outperformed Bitcoin and every stock in the S&P 500, generating substantial shareholder value [2] - The founder and chairman of Strategy, Michael Saylor, is recognized as a visionary for identifying Bitcoin's potential as a treasury reserve asset before it became widely accepted [2]

Core Insights - Michael Saylor's Strategy Inc. has acquired 1,955 Bitcoin for $217.4 million, increasing total holdings to 638,460 BTC with an average purchase price of $111,196 per coin [1][3] - The company's average cost across all Bitcoin purchases stands at approximately $73,880 per Bitcoin, indicating significant unrealized gains as Bitcoin prices rise [1][2] - The recent acquisition was funded through equity programs, including Series A preferred shares and common stock, raising over $217 million in net proceeds [3][4] Financial Strategy - The latest purchase follows a $2.5 billion raise in July, which funded the acquisition of 21,021 BTC at an average price of $117,256 each, pushing total holdings to around 629,000 BTC at that time [4][6] - The company's strategy has been consistent, using equity raises to build one of the largest corporate Bitcoin treasuries globally [4][6] - Year-to-date returns are in the range of 25.8% to 26%, linking the company's financial outlook closely to Bitcoin's volatility [5] Market Position - The company has been adding to its Bitcoin reserves for eight consecutive weeks, indicating a strong commitment to its Bitcoin-centric strategy [3][4] - In August, the firm purchased about 7,714 BTC, a smaller amount compared to previous larger acquisitions, suggesting a more measured approach [5][6] - The company was recently passed over for inclusion in the S&P 500 index, highlighting its reliance on Bitcoin as a financial anchor compared to peers more aligned with traditional equity benchmarks [7]

Summary of Key Points from the Conference Call Company and Industry Overview - The discussion centers around **Strategy**, a Bitcoin treasury company founded by Michael Saylor, which has accumulated nearly **640,000 Bitcoin** valued at over **$70 billion** in five years [2][12] - The company is positioned as a pioneer in recognizing Bitcoin as a treasury reserve asset, outperforming Bitcoin and other stocks in the S&P 500 since its Bitcoin strategy launch in **August 2020** [2][12] Core Insights and Arguments - **Institutional Adoption**: The period from **2025 to 2029** is expected to see rapid institutional adoption of Bitcoin, driven by a shift in governmental and regulatory attitudes towards cryptocurrency [5][10] - **Government Support**: The current administration is actively promoting Bitcoin, with multiple cabinet members now expressing enthusiasm for it, marking a significant change from previous skepticism [8][10] - **ETF Success**: Bitcoin ETFs launched by Wall Street have become the most successful in history, with **500,000 Bitcoin** held in these ETFs, indicating strong market interest [10][11] - **Public Company Adoption**: The number of publicly listed companies holding Bitcoin has surged to **180**, with significant investments made recently, including a **$217 million** purchase by Strategy [12][14] - **Bitcoin as Digital Capital**: Bitcoin is framed as a new form of digital capital, with the potential to revolutionize traditional finance by providing a high-performing asset that can be leveraged effectively [19][33] Financial Instruments and Strategies - **Treasury Company Model**: Strategy operates as a treasury company, accumulating capital and issuing securities against it, effectively creating a new corporate structure that allows for significant capital accumulation [32][36] - **Securitization of Bitcoin**: The company is innovating by securitizing Bitcoin, offering products like **Stride** and **Stretch**, which provide investors with stable yields while exposing them to Bitcoin's upside [60][70] - **Amplification of Returns**: By leveraging Bitcoin holdings, the company can significantly amplify returns, with projections indicating that leveraging could yield **2.8 times** more Bitcoin than holding the underlying asset [89][90] Market Dynamics and Future Outlook - **Market Growth**: The crypto economy is projected to grow to a **$10 to $20 trillion** industry by **2028**, with increasing participation from traditional finance [26][28] - **Political Environment**: The current political climate is highly favorable for Bitcoin and digital assets, with multiple bills in Congress aimed at supporting crypto innovation [25][26] - **Investor Sentiment**: There is a growing alignment within the crypto industry, with stakeholders recognizing the importance of cooperation to drive forward the adoption of Bitcoin and digital assets [30][31] Additional Important Insights - **Regulatory Changes**: The shift in regulatory attitudes has opened doors for traditional financial institutions to engage with Bitcoin, which was previously viewed with skepticism [22][23] - **Public Perception**: The perception of Bitcoin is evolving from a speculative asset to a legitimate form of digital capital, attracting interest from mainstream investors [18][20] - **Long-term Viability**: The company emphasizes the long-term potential of Bitcoin as a stable and high-performing asset, contrasting it with traditional investment strategies that often underperform [54][60] This summary encapsulates the key points discussed in the conference call, highlighting the strategic positioning of Strategy within the evolving landscape of Bitcoin and digital assets.

Core Insights - MicroStrategy, now known as Strategy, was not included in the S&P 500 index during the recent rebalance on September 5, despite expectations from analysts [1][2] - The decision was attributed to the company's presence in an already overweight sector, as noted by Eric Balchunas, a senior ETF analyst [2] - The crypto community reacted humorously to the news, with memes circulating online [3] Company Performance - Co-founder and executive chairman Michael Saylor highlighted that MicroStrategy generated better returns than Bitcoin and the SPDR S&P 500 ETF (SPY) [4] - The firm announced the acquisition of 1,955 BTC between September 2-7, bringing its total holdings to 638,460 BTC, valued at approximately $71.7 billion at the time [4] Future Prospects - There is a possibility for MicroStrategy to be added to the S&P 500 index in December if it continues to meet the necessary qualifications [5] - Balchunas emphasized that the final decision rests with a committee, indicating that multiple factors influence the selection process [5]