Group 1 - YieldMax has introduced the MSTR Option Income Strategy ETF (MSTY), which previously yielded triple digits, creating demand for a similar Canadian investment vehicle [1] - The author has a background in luxury real estate auctions and has been analyzing stock investments since the age of 14, focusing on income investments and undervalued stocks with long-term growth potential [1] - The primary investment strategy involves purchasing high-yield income ETFs and growth stocks, particularly in the sports, real estate, and technology sectors [1]

Group 1: Corporate Crypto Treasury Movement - The corporate crypto treasury movement is transitioning to a competitive phase, with public companies holding over 1 million Bitcoin valued at $110 billion and digital asset treasuries controlling $215 billion across 213 entities [1][2] - Most participants in the corporate crypto treasury space face potential failure during adverse credit cycles, indicating structural vulnerabilities [1][5] Group 2: Leading Companies and Strategies - MicroStrategy, now known as Strategy Inc, leads the corporate crypto movement with 638,460 BTC and recorded $14.05 billion in unrealized gains during Q2 2025 [2][3] - The company's aggressive accumulation strategy has inspired many imitators, but the scarcity premium enjoyed by early movers has diminished due to competitive pressures [2][4] Group 3: Market Dynamics and Regulatory Changes - The corporate Bitcoin treasury model was pioneered by Strategy in 2020, utilizing convertible bonds and equity raises, with other firms like MARA Holdings and XXI also accumulating significant Bitcoin [3][4] - Nasdaq has tightened supervision requirements for digital asset treasuries, necessitating shareholder approval for certain transactions, reflecting a shift in the regulatory landscape [3][4] Group 4: Financial Strategies and Risks - Strategy has abandoned its self-imposed market-to-net-asset-value threshold for stock sales due to funding pressures and is facing multiple class-action lawsuits [4] - Many Bitcoin treasury companies operate as unprofitable entities or rely on mark-to-market gains for solvency, highlighting critical flaws in their strategies [5][6] Group 5: Comparison with Traditional Assets - The strategy of acquiring scarce assets mirrors historical wealth-building methods but lacks the yield-generating potential seen in real estate [6] - Bitcoin treasury companies engage in negative-carry trades, borrowing fiat currency to acquire non-yielding assets without adequate risk mitigation mechanisms [6]

Core Insights - MicroStrategy's Executive Chair Michael Saylor criticized the S&P 500's returns by comparing them to his company's performance since adopting a Bitcoin treasury strategy [1][2] - MicroStrategy achieved an annualized return of 92%, significantly outperforming Bitcoin at 55%, the S&P 500 at 14%, Vanguard Real Estate Index Fund ETF at 2%, and Vanguard Total Bond Market Index Fund ETF at -4% [2] - Despite meeting all criteria, MicroStrategy was not included in the S&P 500, which instead added AppLovin, Emcor Group, and Robinhood [4] Company Performance - MicroStrategy is the largest corporate holder of Bitcoin, with over 638,000 BTC valued at nearly $72 billion [5] - Inclusion in the S&P 500 would have marked a significant milestone for both MicroStrategy and Bitcoin, providing millions of investors indirect exposure to Bitcoin [5] Market Sentiment - Saylor expressed optimism about future inclusion in the S&P 500, noting a digital transformation in the markets and increasing support from various sectors [6] - MicroStrategy would have been the first digital asset treasury firm in the S&P 500, joining other cryptocurrency-linked firms like Coinbase and Block [7]

MicroStrategy (MSTR) and other crypto treasury stocks remained in focus on Thursday after JPMorgan analysts sounded the alarm on investing in companies functioning primarily as Bitcoin (BTCUSD) funds rather than traditional operating businesses. Their warning arrives shortly after MicroStrategy faced rejection in joining the S&P 500 Index ($SPX) despite meeting technical requirements, which JPMorgan dubbed a major “blow not only to MSTR but to other corporate crypto treasuries” as well. More News from Ba ...

Since 2020, MSTR has steadily grown its Bitcoin per share to record highs 👀 https://t.co/xWBj9JIGWu ...

Group 1 - The S&P 500's rejection of MicroStrategy, now rebranded as Strategy, is seen as a significant warning to companies heavily invested in Bitcoin, despite meeting technical requirements [1][2][3] - Analysts from JPMorgan describe the decision as a "blow to crypto treasuries," indicating a reluctance to include companies that operate more like Bitcoin funds than traditional businesses [2][5] - The exclusion of MicroStrategy from the S&P 500 suggests that the indirect exposure to Bitcoin through such companies may be reaching its limits, impacting their stock performance and institutional investment [3][5] Group 2 - MicroStrategy holds the largest public Bitcoin treasury, with 638,460 BTC, significantly outpacing other companies, which positions it as a proxy for investors seeking crypto exposure [6][5] - The decision by the S&P 500 committee raises concerns that other index providers may reconsider their inclusion of crypto treasury companies, potentially affecting their market presence [5][2] - Currently, public companies collectively hold about 1,006,592 BTC, representing approximately 4.8% of the total supply, with ETFs and funds holding the majority at 1.63 million BTC [6]

LATEST: Michael Saylor's Strategy was denied entry into the S&P 500 despite meeting technical requirements, highlighting index committees’ reluctance to include companies acting as bitcoin funds.@willcanny99 reports.https://t.co/RSXwvMtIcx ...

Core Insights - Strategy (MSTR) shares are currently overvalued with a Value Score of F, trading at a price/book ratio of 1.93X compared to MARA Holdings' 1.23X and Riot Platforms' 1.84X, indicating a premium valuation [1] - MSTR stock is trading below both the 50-day and 200-day moving averages, signaling a bearish trend [6][8] - Year-to-date, MSTR shares have appreciated 12.7%, underperforming the Zacks Financial-Miscellaneous Services industry's return of 3.9% and the Zacks Finance sector's return of 12.1% [9] - As of September 7, Strategy holds 638,460 bitcoins, making it the world's largest bitcoin treasury company [10] - MSTR's expected operating income for 2025 is $34 billion, with a net income of $24 billion, based on a bitcoin price of $150,000 [17] Valuation Comparison - MSTR shares have underperformed Riot Platforms but outperformed MARA Holdings and CleanSpark, with MARA Holdings dropping 5.4%, while Riot Platforms and CleanSpark shares increased by 60.6% and 8.9%, respectively [11] - The disciplined capital raising approach through preferred equity offerings, including STRK, STRF, Stride, and Stretch, is a key catalyst for MSTR [18] Financial Performance - MSTR has issued $10.7 billion in equities and $7.6 billion in fixed income securities year to date, with significant amounts raised through various convertible notes and offerings [19] - The Zacks Consensus Estimate for MSTR's loss for the third quarter of 2025 remains unchanged at 11 cents per share, compared to a loss of $1.56 in the same quarter last year [21] - For 2025, the consensus estimate for MSTR's loss is $15.73 per share, compared to a loss of $6.72 per share in 2024 [22] Market Conditions - Despite growing bitcoin holdings, MSTR faces challenges from a stretched valuation, difficult macroeconomic conditions, and tariff uncertainties that increase bitcoin trading volatility [23]

Group 1 - Companies acquiring ether and other altcoins have seen significant stock price increases, with some stocks surging over 500% year-to-date [2][3] - Eightco Holding, Bitmine Immersion Technologies, and Sharplink Gaming are among the companies transitioning to crypto treasuries, purchasing various cryptocurrencies for their balance sheets [2][5] - The trend of companies acting as crypto proxies is gaining momentum, with a revival in altcoins potentially legitimizing these assets further [3][8] Group 2 - Bitcoin's market dominance has decreased from 65% in late June to approximately 56%, while ether's share has increased from around 9% to 13% [7] - The overall market share of non-stablecoins has risen from 19% to 24%, indicating a growing interest in altcoins [7] - Traders are increasingly buying stocks of companies with crypto treasuries as a way to gain exposure to cryptocurrencies without direct investment [6]

The S&P 500 index is not including Michael Saylor’s Strategy — and other indexes could follow suit, JPMorgan said. - Getty Images The S&P 500’s refusal to include the company previously called MicroStrategy raises questions about the sustainability of the business model of corporate treasury investments in cryptocurrency. JPMorgan strategists led by Nikolaos Panigirtzoglou say the decision by S&P Dow Jones Indices last week not to promote the company that’s now called Strategy MSTR into the S&P 500 index ...