MicroStrategy (MSTR) shares closed comfortably in the green on Dec. 9 as Bitcoin (BTCUSD) – the world’s largest cryptocurrency by market cap – rallied ahead of the Federal Reserve’s rate decision. BTC pushed past $94,000 this morning as investors grew more optimistic that the U.S. central bank will deliver a “hawkish cut” on Thursday. More News from Barchart Despite today’s gain, MicroStrategy stock remains down over 50% versus its year-to-date high in mid-July. www.barchart.com Is It Worth Buying Mic ...

Core Viewpoint - MicroStrategy is intensifying its Bitcoin acquisition strategy despite a significant decline in its stock price, which has dropped over 50% in the last six months [1] Group 1: Bitcoin Acquisition Strategy - The company acquired 10,624 Bitcoin for $962.7 million at an average price of $90,615 per coin, increasing total holdings to 660,624 Bitcoin valued at $49.35 billion [1] - This purchase signifies a return to aggressive buying after a period of smaller acquisitions due to adverse market conditions [2] Group 2: Funding and Financial Position - The recent acquisition was primarily funded through the sale of $928.1 million in common stock and an additional $34.9 million from preferred stock sales [2] - MicroStrategy has established a $1.44 billion cash reserve to manage dividend payments on preferred stock and interest on debt, indicating a shift in funding strategy [5] Group 3: Market Performance and Leadership - The stock hit a 52-week low of around $155 but has since recovered to $190, remaining below recent highs [4] - Executive Chairman Michael Saylor is actively promoting Bitcoin to sovereign wealth funds and institutional investors [4] Group 4: Investment Risks and Strategy Changes - MicroStrategy holds approximately 3.1% of the total Bitcoin supply, making it vulnerable to significant risks if market conditions worsen [6] - CEO Phong Le has acknowledged the possibility of selling Bitcoin under certain crisis conditions, marking a departure from the company's previous "never-sell" philosophy [7] - The company's mNAV is nearing the critical 0.9 danger zone, raising concerns about potential forced sales if stock value falls below Bitcoin holdings [7] Group 5: Preferred Securities - MicroStrategy has issued four preferred securities in 2025, raising $6.7 billion, with the largest being the U.S. IPO of the year [8] - These preferred instruments provide tax-deferred dividends as a return of capital, expected to continue for at least 10 years due to the company's negative taxable earnings profile from its Bitcoin strategy [8]

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Core Viewpoint - The recent purchase of approximately 10,600 BTC by MicroStrategy, valued at nearly one billion dollars, has sparked debate in the crypto community regarding the lack of price movement in Bitcoin despite the significant acquisition [1][2]. Group 1: Market Dynamics - Large institutional purchases, such as MicroStrategy's, typically occur through Over-The-Counter (OTC) desks rather than public exchanges, which prevents immediate market reactions [3]. - The nature of OTC trades allows for substantial transactions to be executed without impacting public liquidity pools, thus avoiding slippage and leaving no visible trace on price charts [4]. - The ability of MicroStrategy to absorb large amounts of Bitcoin privately indicates the depth of liquidity in the market at current supply levels [4]. Group 2: Supply and Demand - MicroStrategy's acquisition of 10,000 BTC represents only about 0.05% of the circulating supply, which diminishes its impact on market prices when sourced through negotiated block trades [5]. - The accumulation of Bitcoin by corporations can continue unnoticed during sideways market conditions, with retail traders often unaware until after the transactions are settled [5]. Group 3: Perception vs. Impact - Critics argue that MicroStrategy's strategy may focus more on creating a bullish sentiment through promotional announcements rather than having a direct impact on Bitcoin's price [6].

Core Insights - Strategy Inc. (MSTR) is recognized for its aggressive Bitcoin strategy, but its long-term fundamentals are rooted in its software and enterprise analytics businesses, with subscription services emerging as a key driver for stability and growth [1] Software Business Performance - Growth in the software business is uneven, with declines in product support and other services offsetting subscription gains, indicating pressure on parts of the legacy software portfolio [2] - Despite challenges, the software business maintains strong profitability, supported by healthy margins, making subscription services a stabilizing force amid Bitcoin-driven earnings volatility [3] Subscription Services Growth - In Q3 2025, subscription service revenues increased by 65.4% year-over-year to $46.0 million, representing approximately 36% of total revenues, reflecting the growing adoption of cloud-based analytics offerings [4][11] - The shift towards subscription services is strategically important as recurring revenues provide greater visibility and stability compared to one-time license sales [4] Future Projections - The Zacks Consensus Estimate projects modest revenue growth of about 2.1% in 2025 and 4.9% in 2026, suggesting that steady growth in subscription services could enhance the software segment's contribution to long-term growth [5] Competitive Landscape - Competitors like Microsoft (MSFT) and Salesforce (CRM) leverage strong subscription-based platforms for steady recurring revenue through cloud and analytics services [6] - Microsoft’s Power BI poses a significant competitive threat to MSTR, offering an intuitive interface and integration across its ecosystem, making it attractive for small and medium-sized businesses [7] - Salesforce competes by unifying analytics and CRM through its Tableau-powered ecosystem, enhancing customer relationships and sales processes [8] Stock Performance and Valuation - MSTR shares have declined by 49.7% over the past year, underperforming the Zacks Finance sector's 11.7% gain, and lagging behind competitors like Microsoft, which rose by 10.1% [9] - MSTR currently has a Value Score of F, trading at a Price/Book ratio of 1.01X compared to the sector's 4.24X [13] - The Zacks Consensus Estimate for MSTR's 2025 earnings is $78.04 per share, indicating a recovery from a previous loss of $6.72 per share [16]

Core Viewpoint - The company has transformed from a software firm into the world's largest corporate holder of Bitcoin, indicating a significant strategic pivot towards cryptocurrency investment [1] Group 1: Company Transformation - The company has made a substantial commitment to Bitcoin, effectively betting its entire business model on the digital asset [1] - This shift highlights the growing trend of corporations diversifying their portfolios to include cryptocurrencies as a significant asset class [1] Group 2: Industry Implications - The company's position as the largest corporate holder of Bitcoin may influence other firms to consider similar investments, potentially impacting the overall market dynamics of cryptocurrency [1] - This transformation reflects a broader trend in the industry where traditional companies are increasingly integrating digital assets into their financial strategies [1]

Core Insights - The main question regarding Strategy (MSTR) is whether it will list a perpetual preferred equity or "digital credit" in Japan, to which executive chairman Michael Saylor responded that it will not happen in the next twelve months [1] Group 1: Metaplanet's Digital Credit Instruments - Metaplanet is planning to introduce its own digital credit instruments, "Mercury" and "Mars," into Japan's perpetual preferred market, which currently has only five listed equities [2] - Mercury, described as Metaplanet's version of Strategy's STRK, offers a yield of 4.9% in yen and includes convertibility, significantly higher than Japanese bank deposits and money market funds [2] - Mars is designed to mirror Strategy's STRC, a short duration high yield credit product, and comes as Strategy has expanded its own perpetual preferred program [3] Group 2: Market Mechanisms and Strategies - Japan does not permit at-the-market share sales (ATM) like those used by Strategy, leading Metaplanet to utilize a moving strike warrant (MSW) for its perpetual preferred offerings [4] - Saylor advocates for broad participation in issuing digital credit, expecting around a dozen issuers, while Gerovich emphasizes the importance of balance sheet strength and plans to focus on issuing credit primarily in Japan and Asia [5]

Core Insights - Anthony Scaramucci praised Michael Saylor's strategy for bolstering Strategy Inc.'s balance sheet through Bitcoin purchases and equity sales [1][2] - Strategy Inc. recently acquired 10,624 BTC, valued at approximately $962.7 million, marking its largest weekly purchase since July 2025 [3] - The company's total Bitcoin holdings now amount to 660,624 BTC, acquired for about $49.35 billion, with an average purchase price of roughly $74,696 [3] Financial Performance - Strategy Inc.'s stock has been on a multi-month downtrend, with a current market value of $55.25 billion, which is lower than the value of its Bitcoin holdings at $59.62 billion, indicating the stock is trading at a discount [4] - The stock closed at $183.69 during the regular trading session, reflecting a 2.63% increase, but fell 0.59% in after-hours trading to $182.60 [5] - MSTR has exhibited a very low growth score, indicating limited historical expansion in earnings and revenue compared to other cryptocurrency-linked stocks [5]

🔥 LATEST: Strategy’s CEO Phong Le says the company will hold its Bitcoin until at least 2065, maintaining a long-term accumulation strategy as MSTR shares continue to serve as a key proxy for $BTC despite the rise of spot ETFs. https://t.co/DdVcjmX0Pi ...

Core Insights - The company, Strategy, has made a significant investment in bitcoin, purchasing approximately $1 billion last week, marking its largest single-time acquisition since July [1] Company Summary - Strategy, led by Michael Saylor, is actively increasing its bitcoin holdings, indicating a strong commitment to the cryptocurrency market [1]