RT Yogita Khatri (@Yogita_Khatri5).@saylor’s @Strategy can withstand even a “prolonged crypto winter,” TD Cowen says.Strategy today said it has boosted its USD reserve to $2.19 billion, a move TD said improves liquidity and financial flexibility even if bitcoin volatility persists.“Concerns around the viability of Strategy’s balance sheet are overblown, in our opinion,” TD wrote.The firm reiterated its buy rating, maintaining a $500 price target over the next 12 months. ...

Core Insights - The year 2025 saw a significant replication of the corporate treasury strategy pioneered by Strategy, with various companies across sectors building substantial holdings in Bitcoin, Ethereum, and Solana through formal capital-raising methods [1] Group 1: Strategy's Bitcoin Holdings - Strategy, formerly MicroStrategy, acquired its first Bitcoin in August 2020 at a price of $14.44 per share and currently holds 660,624 BTC valued at $62 billion as of December 15, with a share price increase of 1,204% [2] - The company utilized a combination of debt and equity to purchase Bitcoin this year [2] Group 2: Capital Raising Activities - In February, Strategy raised $2 billion through a bond sale to acquire 20,365 BTC at an average price of $97,514, with the bonds set to convert to stock in 2030 [3] - In March, during a trade war, Strategy purchased 22,048 BTC at $87,000, raising $1.2 billion from stock sales and an additional $1.85 million through a new perpetual preferred stock product [4] - In April, Strategy sold 4 million shares to raise $1.42 billion, acquiring 15,355 BTC, with 97% of the funds coming from stock sales [5] - In July, Strategy launched STRC, a perpetual preferred stock that pays monthly dividends, using it to fund the purchase of 21,021 BTC, marking a significant innovation in the market [7] Group 3: Market Dynamics - In November, Strategy's market capitalization fell below the value of its Bitcoin holdings, which could lead to future stock sales being dilutive rather than accretive [6]

Core Insights - Strategy (MSTR), the largest corporate Bitcoin holder, has experienced a 49.7% decline in shares over the past three months, significantly underperforming the Zacks Finance sector's growth of 1.4% and the Zacks Financial-Miscellaneous Services industry's decline of 12.9% [1] Group 1: Performance and Market Position - The underperformance of MSTR is linked to Bitcoin price volatility, which closely ties earnings to Bitcoin movements, and a compression in the mNAV multiple [2] - MSTR's stock has lagged behind competitors such as CleanSpark (CLSK), Riot Platforms (RIOT), and MARA Holdings (MARA), which fell 13.5%, 15%, and 42.5% respectively during the same period [2] - MSTR holds approximately 671,268 BTC, establishing Bitcoin as its primary reserve asset, which provides a structural advantage over competitors [7][8] Group 2: Financial Strategy and Capital Structure - MSTR has raised about $6.7 billion through preferred securities, enhancing its capital flexibility and reducing reliance on convertible debt [11] - The company’s innovative digital credit and preferred securities platform has broadened funding options, with STRC becoming the largest U.S. IPO of 2025 [11] - MSTR's shares are trading at a price-to-book value of 0.91X, significantly lower than the industry average of 3.18X, indicating potential undervaluation [13] Group 3: Earnings and Valuation Outlook - The Zacks Consensus Estimate for MSTR's 2025 earnings is $78.04 per share, with a projected decrease to $51.60 per share in 2026, reflecting a year-over-year decline of 33.88% [14][15] - MSTR's stock is currently trading below both the 50-day and 200-day moving averages, indicating a bearish trend [16] Group 4: Investment Recommendation - Despite the recent share price decline, MSTR retains long-term appeal due to its substantial Bitcoin holdings, flexible capital structure, and discounted valuation [19] - The combination of strong long-term fundamentals and short-term uncertainties suggests that maintaining a hold position is prudent for investors [19]

Group 1: Market Performance - Gold has surged 2% to a new record high of $4,475 per ounce, while silver has increased by 1.6%, reaching just below $70 per ounce [1] - Bitcoin (BTC) has pulled back to around $89,000 after exceeding $90,000, continuing to underperform compared to major asset classes [2] - The Nasdaq and S&P 500 are both up by 0.6%, and the U.S. dollar index has decreased by 0.3% [1] Group 2: AI and Crypto Stocks - Bitcoin miners focusing on AI infrastructure and high-performance computing are outperforming, with Hut 8 (HUT) leading gains at 17.5% [3][4] - Other crypto-related stocks such as Circle (CRCL), Coinbase (COIN), Bullish (BLSH), and Galaxy Digital (GLXY) are up by 2%-4% [5] Group 3: Market Sentiment and Predictions - Analysts from ByteTree suggest that Bitcoin and crypto are unlikely to perform well until the current bull market in precious metals pauses [6] - Despite Bitcoin's historical outperformance over the metals sector, silver's recent rally has nearly matched Bitcoin's returns over the past eight years [6]

Michael Saylor’s Bitcoin (BTC) treasury company, Strategy (Nasdaq: MSTR), increased its U.S. Dollar Reserve by $747.8 million last week. The company used the proceeds from the sale of its MSTR common stock during the period to fund the cash raise. Related: Michael Saylor's Strategy announces $1.44B dollar reserve as stock slumps With the latest accumulation, Strategy's USD Reserve is worth $2.19 billion as of Dec. 21. The company said it may adjust the reserve from time to time based on market conditions ...

Michael Saylor’s Strategy bolstered its cash reserve to $2.19 billion and paused purchases of Bitcoin over the past week https://t.co/CNdSBifs74 ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations and their influence on stock prices, particularly focusing on Strategy (MSTR) and the average brokerage recommendation (ABR) for the stock [1][5]. Brokerage Recommendation Summary - Strategy has an average brokerage recommendation (ABR) of 1.33, indicating a consensus between Strong Buy and Buy, based on recommendations from 15 brokerage firms [2]. - Out of the 15 recommendations, 12 are classified as Strong Buy and 1 as Buy, which accounts for 80% and 6.7% of all recommendations respectively [2]. Analysis of Brokerage Recommendations - The article suggests that relying solely on brokerage recommendations may not be wise, as studies indicate they often fail to guide investors effectively towards stocks with high price appreciation potential [5]. - Brokerage firms tend to exhibit a positive bias in their ratings due to vested interests, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [6][11]. Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, is presented as a more reliable indicator of near-term price performance, classifying stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) [8]. - Unlike the ABR, which is based solely on brokerage recommendations, the Zacks Rank is driven by earnings estimate revisions, which are strongly correlated with stock price movements [12]. Current Earnings Estimates for Strategy - The Zacks Consensus Estimate for Strategy remains unchanged at $78.04 for the current year, indicating steady analyst views on the company's earnings prospects [14]. - The Zacks Rank for Strategy is currently 3 (Hold), suggesting a cautious approach despite the Buy-equivalent ABR [15].

SAYLOR NOW HAS $2.2 BILLION USDStrategy has acquired an additional $750M of USD to pay obligations related to their perpetual preferred stock products.Strategy sold $747.8M worth of MSTR stock and added the proceeds to their USD reserve. Strategy now holds $60.34B of BTC and $2.19B of USD. ...

Topic covering this week:✅ Strategy and BitMine- MICROSTRATEGY PRICE TARGET CUT TO $325.00/SHARE FROM $485.00 BY CITIGROUP- Strategy has increased its USD Reserve by $748 million and now holds $2.19 billion and ₿671,268.- BitMine buys $300 million in ether, crossing 4 million ETH treasury milestone✅ JPMorgan Is Exploring Crypto Trading for Institutional Clients✅ Rising geopolitical tensions are pushing Gold and Silver price to ATH✅ Aster announced Stage 5 Buyback Program: will allocate up to 80% of daily pl ...

Financial Strategy - MicroStrategy increased its USD reserve by $748 million [1] - The company's USD reserve now totals $2.19 billion [1] - MicroStrategy holds 671,268 Bitcoin [1]