Strategy (MSTR) Executive Chairman Michael Saylor indicated that the largest publicly traded holder of bitcoin (BTC) bought more of the largest cryptocurrency over the past week. “More Orange,” Saylor wrote in an X post on Sunday morning. For months, Saylor has typically previewed Strategy’s bitcoin purchases with a weekend post referencing orange dots, a signal that is usually followed by a formal announcement on Monday. Given that the common stock fell 6% over the week, closing below $150 per share, ...

Economist Peter Schiff questioned on Thursday how Strategy Inc. (NASDAQ:MSTR) can sustain the 11% dividend payout on its Perpetual Stretch Preferred Stock (NASDAQ:STRC), citing the company’s ongoing financial challenges. Saylor Says SRTC Providing Yield With Less Volatility It all started when Strategy founder Michael Saylor took to X, highlighting how the Bitcoin-backed preferred stock delivered 11% annual dividend, paid monthly in cash. Saylor attached a chart showing STRC’s 6% historical volatility, ...

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Strategy Inc. (NASDAQ:MSTR) disclosed it sold $2.1 billion worth of stock between January 12-19 and converted it straight into 22,305 Bitcoin (CRYPTO: BTC), validating chairman Michael Saylor’s ‘Bigger Orange' teaser. The Buy Details Show Aggressive Execution Strategy Inc. announced the purchase on Monday, at an average price was $95,284 per Bitcoin—notably higher than the company’s historical average and ...

Strategy (NASDAQ: MSTR) purchased 22,305 bitcoin for approximately $2.13 billion in cash between January 12 and January 19, 2026. The acquisition bumped Strategy’s bitcoin treasury above the 700,000 milestone, bringing the company’s total cryptocurrency holdings to 709,715 bitcoin as of Tuesday Strategy raised funds for the double billion dollar purchase by issuing a mix of common and preferred stock, and the company paid an average price of approximately $95,284 per bitcoin for the haul. As of Tuesday, ...

Core Insights - The article discusses the author's journey from a political career to value investing, emphasizing the importance of risk management and long-term wealth growth [1] Group 1: Career Transition - The author initially pursued a career in politics but shifted to finance after facing challenges in 2019, recognizing the need for financial stability [1] - A sales role at a law firm from 2020 to 2022 allowed the author to excel as a top-grossing salesman and manage a team, enhancing skills in assessing company prospects through sales strategies [1] - The author transitioned to an investment advisory role with Fidelity from 2022 to 2023, focusing on 401K planning but ultimately left due to a mismatch with value investing principles [1] Group 2: Investment Philosophy - The author emphasizes a value investing approach, prioritizing an owner's mindset and a long-term investment horizon [1] - The experience gained from previous roles contributed to a deeper understanding of public companies and their sales strategies, which is crucial for investment assessments [1] - The author began writing for Seeking Alpha in November 2023 to share investment opportunities, reflecting a commitment to actively invest and engage with readers [1]

Core Insights - Michael Saylor, the executive chairman of Strategy, is repositioning the company as a "capital markets platform" to attract new investors and revive its stock, which has fallen over 45% year-to-date [3][4][9] Company Performance - Strategy's stock has underperformed compared to Bitcoin, which has only dropped about 6% in the same period [3][9] - The company has raised approximately $2.5 billion through variable rate series A perpetual stretch preferred shares to buy Bitcoin, and its cash reserves have reached $2.2 billion [5][8] Market Context - The rise of spot Bitcoin ETFs and options has provided investors with alternative ways to invest in Bitcoin, diminishing Strategy's unique position in the market [7] - MSCI has indicated potential removal of companies like Strategy from its indexes, which could lead to significant outflows estimated at $2.8 billion [6] Investor Strategy - Strategy aims to increase outreach to institutional investors and wealth management firms, with Citi analysts maintaining a buy rating and a price target of $485, suggesting a potential upside of about 200% [10]

Core Viewpoint - STRC is a variable-rate preferred stock designed to trade around a $100 stated amount, with the board adjusting the dividend monthly to maintain a price range of approximately $99 to $101, currently priced at around $97 [1] Group 1: Investment Philosophy - The investment philosophy focuses on deep fundamentals, impactful narratives, and Austrian economics, with a primary emphasis on a global, long-run macro view for investment considerations [1] - Long-horizon research will concentrate on digital assets, macroeconomic factors, and general value opportunities, while short-horizon research will focus on options and volatility for income generation and hedging [1]

Revenue Performance - Revenue for the three months ended September 30, 2025, was $860,000, a slight decrease of 1% compared to $871,000 in the same period of 2024[115]. - Product revenue was minimal, with no sales recorded in Q3 2025 compared to $107,000 in Q3 2024, indicating a 100% decrease[115]. - Revenue decreased by $3.4 million, or 49%, from $7.0 million for the nine months ended September 30, 2024, to $3.6 million for the same period in 2025[127]. Product Development and Contracts - Product development contract revenue increased by $0.1 million, or 13%, from $764,000 in Q3 2024 to $860,000 in Q3 2025, primarily due to the timing of milestone completions[116]. - The company has U.S. government revenue-generating contracts and has met all development milestones associated with these contracts[107]. - Product development contract revenue fell by $0.8 million, or 18%, from $4.4 million in the nine months ended September 30, 2024, to $3.6 million in 2025[128]. Future Revenue Expectations - The company expects to begin generating revenues from commercial customers in the first half of 2026, with a sales cycle for Palladyne IQ estimated at 12 to 18 months[106]. - The company aims to enhance its software products and pursue marketing and sales opportunities to achieve revenue from its products[110]. Operating Expenses - Total operating expenses increased by $0.8 million, or 9%, from $8.2 million for the three months ended September 30, 2024, to $8.9 million for the same period in 2025[118]. - Research and development expenses rose by 22%, from $2.6 million in Q3 2024 to $3.1 million in Q3 2025, primarily due to increased labor costs related to software product enhancements[120]. - General and administrative expenses increased by 4%, from $4.0 million in Q3 2024 to $4.1 million in Q3 2025, mainly due to higher stock-based compensation[121]. Other Income and Financial Performance - Other income surged by $4.1 million, or 2,000%, from $0.2 million in Q3 2024 to $4.3 million in Q3 2025, driven by increased mark-to-market gains on outstanding warrants[125]. - Total other income for the nine months ended September 30, 2025, was $34.6 million, a significant increase of $33.8 million, or 4,260%, compared to $0.8 million in 2024[136]. Cash and Financing Activities - Cash, cash equivalents, and marketable securities were $57.1 million as of September 30, 2025, up from $40.1 million as of December 31, 2024[140]. - Net cash used in operating activities increased by $1.6 million to $19.1 million for the nine months ended September 30, 2025, compared to $17.5 million in the same period of 2024, primarily due to changes in operating assets and liabilities[151]. - Net cash provided by financing activities increased by $35.7 million, reaching $35.6 million for the nine months ended September 30, 2025, primarily from $35.5 million in net proceeds from the sale of Common Stock and exercise of warrants[153]. Financial Position and Risks - The company has an accumulated deficit of approximately $479.3 million as of September 30, 2025[140]. - The backlog as of September 30, 2025, was $0.8 million, with $0.2 million funded and $0.6 million unfunded, while the total estimated remaining contract value was $6.9 million[139]. - The company is dependent on customer demand for its AI/ML software products, which remains unproven, and faces risks related to government contracts due to the current government shutdown[112]. - If additional financing is required, it may not be available on favorable terms, which could impair operational flexibility and increase interest expenses[149]. Accounting and Compliance - The company’s financial statements are prepared in accordance with GAAP, requiring estimates and judgments that may differ from actual results[157]. - There have been no material changes to critical accounting policies or estimates since the last annual report[158]. - The company is classified as an "emerging growth company" and has elected to take advantage of the extended transition period for new or revised financial accounting standards[155].

Core Insights - Strategy, led by Michael Saylor, has announced a 10.5% monthly dividend on its STRC stock, reflecting confidence in its Bitcoin-backed financial structure following a positive Q3 report with $3.9 billion in profits, a significant turnaround from a loss of $432.6 million in Q3 2024 [1][2]. Group 1: Dividend and Financial Performance - The 10.5% dividend represents a 0.5% increase from the previous month's payout of 10.25% [2]. - Strategy's perpetual preferred stock, STRC, is overcollateralized by historical Bitcoin profits to mitigate downside volatility [2]. - The company currently holds 640,808 BTC with unrealized gains of $23.2 billion [3]. Group 2: Market Trends and Investor Behavior - Bitcoin's price closed around $110,150 in October, marking an 8% decline, which led to a selloff among Bitcoin treasury firms, reducing their aggregate market capitalization from $142.4 billion to $123.6 billion, a decline of $18.8 billion or 13% [3][4]. - Despite the downturn in stock prices for crypto-exposed firms like Marathon Digital and Galaxy Digital, the total Bitcoin held by treasury firms increased from 800,710 BTC to 804,680 BTC, indicating a rise of 3,970 BTC valued at approximately $437.8 million [4]. - This countercyclical buying behavior suggests institutional confidence in Bitcoin as a strategic treasury asset, even amid market turbulence [5]. Group 3: Future Outlook - Strategy's intent to raise liquidity for additional Bitcoin purchases may attract new market entrants and sustain demand in November [5].

Core Insights - Strategy (MSTR) is expected to report a profit for the second consecutive quarter in Q3, driven by an increase in bitcoin prices, which may qualify the company for potential inclusion in the S&P 500 [1][3] - The estimated net income for MSTR is projected at $2.9 billion, translating to approximately $10 per share, with trailing twelve-month earnings per share (EPS) estimated at $22.80 [2][3] - MSTR meets several criteria for S&P 500 inclusion, including positive latest quarter results, over 50% public float, and average daily trading volume exceeding 250,000 shares [3] Financial Performance - MSTR's earnings for the past four quarters are estimated to be around $22.80 per share, with Q2 and Q3 2025 projected EPS of $32.6 and $10.1, respectively [2] - The analysis includes a deferred tax liability of $970 million, which impacts the net income calculation [2] Dividend Information - Strategy has increased its dividend rate on perpetual preferred stock STRC from 10% to 10.25%, with cash dividends payable on October 31 [4] - The current price of STRC is $97, and the company plans to continue raising the rate to approach its $100 par value [4] Market Reaction - MSTR shares rose by 2.9% in premarket trading, coinciding with a 3% increase in bitcoin prices to $116,700 [5]