Charles Schwab quietly boosts stake in MicroStrategy

Core Insights - Institutional interest in MicroStrategy, now known as Strategy, is increasing despite the downturn in Bitcoin prices [1] - Charles Schwab has expanded its holdings in Strategy, acquiring an additional 91,859 shares, totaling approximately 1.27 million shares valued at around $168 million [1] - Strategy has recently increased its Bitcoin holdings by purchasing 2,486 BTC for $168.4 million, bringing its total to 717,131 BTC, making it the largest corporate Bitcoin holder globally [2] Financial Performance - For the year ending December 31, 2025, Strategy reported $5.40 billion in unrealized losses on digital assets, partially offset by a $1.55 billion deferred tax benefit [3] - In Q4 alone, unrealized losses reached $17.44 billion, with a $5.01 billion deferred tax benefit [3] - As of year-end, Strategy had a deferred tax liability of $2.42 billion [3] Stock Performance - MSTR shares have faced downward pressure, with a current price of $127.91, down 4.46% at press time, and a year-to-date decline of 18.61%, alongside a 64.82% drop over the past six months [4] Market Positioning - Intesa Sanpaolo, an Italian banking giant, has also taken a significant position in Strategy through put options valued at approximately $184.6 million [5] - The structure of Intesa's position suggests a strategic bet on the convergence between Strategy's stock price and the value of its Bitcoin holdings [6] Valuation Metrics - Strategy has historically traded at a premium to the value of its Bitcoin reserves, with a current multiple of net asset value (mNAV) at 1.19, indicating a 19% premium [7] - This premium reflects market expectations regarding leverage, future Bitcoin purchases, capital markets strategy, or equity market demand [8]