Strategy (NasdaqGS:MSTR) Q4 2025 Earnings call February 05, 2026 05:00 PM ET Company ParticipantsAndrew Kang - CFODan Hillary - Head of TreasuryLarry Lepard - Managing PartnerLyn Alden - Founder and PrincipalMichael Saylor - Executive ChairmanPete Christiansen - DirectorPhong Le - CEOShirish Jajodia - Corporate Treasurer and Head of Investor RelationsTom Lee - Managing Partner and the Head of ResearchConference Call ParticipantsAndrew Harte - Director and FinTech AnalystLance Vitanza - Research AnalystMark ...

Strategy (NasdaqGS:MSTR) Q4 2025 Earnings call February 05, 2026 05:00 PM ET Company ParticipantsAndrew Kang - CFODan Hillary - Head of TreasuryLarry Lepard - Managing PartnerLyn Alden - Founder and PrincipalMichael Saylor - Executive ChairmanPete Christiansen - DirectorPhong Le - CEOShirish Jajodia - Corporate Treasurer and Head of Investor RelationsTom Lee - Managing Partner and the Head of ResearchConference Call ParticipantsAndrew Harte - Director and FinTech AnalystLance Vitanza - Research AnalystMark ...

Core Viewpoint - GameStop Corp. is exploring significant strategic moves, including increasing its stake in Bitcoin and potentially acquiring companies to boost its market capitalization, which currently stands at $11 billion, with aspirations to reach $100 billion [2][3][4]. Group 1: Stock Performance and CEO Compensation - GameStop shares are currently trading 81% below their 2021 high of $121 [2]. - If GameStop's market capitalization rises to $100 billion, CEO Ryan Cohen could earn $35 billion based on a recent compensation plan [3]. Group 2: Acquisition Strategies - GameStop is considering acquiring Marathon Digital for $5.5 billion, which would be a 35% premium, and could use its remaining cash of $2.5 billion to buy more Bitcoin, potentially transforming into a Bitcoin miner [5][6]. - The acquisition of Marathon could position GameStop as one of the largest Bitcoin producers, with the combined company's value potentially soaring five to ten-fold if Bitcoin prices rise significantly [6][7]. Group 3: Alternative Acquisition Options - An alternative acquisition target is Discord, valued between $5 billion to $8 billion, which could provide access to a large user base for targeted game-related promotions [13]. - Achieving a $100 billion market capitalization through the Discord acquisition might take three to five years, requiring $3 billion to $5 billion in revenue during that period [15]. Group 4: Market Conditions and Valuation - The premium on Bitcoin holdings has decreased, with the multiplier-to-net asset value falling from over 2.4 to around 1.1 due to high share dilution and investor concerns [10]. - Wall Street currently views GameStop as 42% overvalued, setting a price target of $13.50, indicating that achieving ambitious goals will require bold strategies [16].

Core Viewpoint - Strive, Inc. plans to conduct a $150 million follow-on offering of its Variable Rate Series A Perpetual Preferred Stock (SATA Stock) to finance various corporate activities, including the redemption of convertible notes and acquisition of bitcoin-related products [1][2]. Group 1: Offering Details - The offering will be registered under the Securities Act of 1933 and is subject to market conditions [1]. - Strive intends to use the net proceeds to finance the redemption and repayment of Semler Convertible Notes, acquire bitcoin, and for general corporate purposes [2]. - The company is negotiating exchanges of Semler Convertible Notes for SATA Stock, which may reduce the size of the follow-on offering [3]. Group 2: Dividend Structure - SATA Stock accumulates cumulative dividends at a variable rate of 12.25% per annum, payable monthly in arrears starting February 15, 2026 [4]. - Strive has the discretion to adjust the monthly regular dividend rate, subject to certain restrictions [4]. - If regular dividends are unpaid, compounded dividends will accumulate at a rate of 12.25% plus 25 basis points, increasing by 25 basis points per month up to a maximum of 20% per annum [4]. Group 3: Redemption Rights - Strive has the right to redeem SATA Stock at a cash price of $110 per share, plus any accumulated dividends [6]. - The company can initiate a "clean-up redemption" if the total outstanding shares fall below 25% of the initial offering [6]. - Holders of SATA Stock have the right to require Strive to repurchase shares at a cash price equal to the stated amount plus accumulated dividends in the event of a "fundamental change" [7]. Group 4: Financial Position - Strive established an initial dividend reserve of $12.00 per share at the IPO Closing and plans to increase it to $12.25 per share with the new offering [5]. - As of January 16, 2026, Strive holds approximately 12,797.6 bitcoin and manages over $2.3 billion in assets [12]. Group 5: Management and Advisors - Barclays and Cantor are acting as joint book-running managers for the offering, with Clear Street as a co-manager [9]. - The offering is being made under an effective shelf registration statement filed with the SEC [10].

Core Insights - Strategy (NASDAQ:MSTR) pioneered the Bitcoin treasury company strategy, which previously resulted in mutual gains for both Bitcoin and the company's stock [2] - The correlation between Bitcoin's price and Strategy's stock has weakened significantly, with Bitcoin down 27% from its October 2025 peak, while Strategy's shares have dropped over 64% [3][7] Bitcoin Market Dynamics - Bitcoin is currently trading around $90,200, down from recent highs, facing significant headwinds [4] - Proponents argue Bitcoin serves as a store of value, akin to "digital gold," but market behavior is increasingly challenging this view as gold prices rise amid geopolitical tensions [4][5] Investor Sentiment and Company Performance - Strategy's recent acquisition of 22,305 Bitcoin for $2.13 billion has not positively impacted its stock, which fell nearly 7% in midday trading [3][7] - The acquisition was funded through $1.83 billion in common stock sales and $294.3 million from perpetual preferred equity, leading to ongoing shareholder dilution [6][7] - Strategy's software business generates annual revenue between $460 million and $500 million, which is insufficient to cover preferred stock dividends approaching billions [7]

Core Insights - GameStop is reportedly moving to sell its Bitcoin holdings, which were added to its corporate treasury in mid-2025, contributing to a rise in its stock price at that time [1] Group 1: Bitcoin Holdings and Transfers - Recent on-chain activity has led to speculation that GameStop is "dumping" its Bitcoin holdings, following large transfers to Coinbase Prime [2] - On January 18, GameStop transferred 100 BTC, valued at approximately $9.5 million, from wallets linked to Coinbase Custody to Coinbase Prime [2] - Two days later, on January 20, an additional 2,296 BTC was moved to Coinbase Prime, indicating potential selling rather than long-term holding [3] - As of the end of Q3 2025, GameStop's Bitcoin holdings were valued at $519.4 million, with independent trackers confirming holdings of 4,710 BTC through early January 2026 [3] Group 2: Acquisition and Market Context - GameStop first disclosed its Bitcoin treasury strategy in May 2025, purchasing 4,710 BTC at an average acquisition price of approximately $106,000 per BTC [4] - The company became the 22nd-largest public corporate holder of Bitcoin at that time, despite entering the Bitcoin treasury race relatively late [5] - Bitcoin's price has struggled to regain momentum compared to other assets like gold and Ethereum, raising concerns about the viability of GameStop's Bitcoin position [5] Group 3: Speculation and Management - Amid rising volatility and bear-market predictions, there is speculation that GameStop could be one of the first public companies to unwind its Bitcoin position, although no official sale announcement has been made [6] - Transfers to Coinbase Prime may also reflect routine treasury management activities, such as rebalancing holdings or preparing for Bitcoin-linked financial strategies [6] - In total, GameStop transferred 2,396 BTC to Coinbase Prime in January 2026, representing about 51% of their original Bitcoin holdings [7]

Core Insights - MicroStrategy (MSTR) has transformed from a legacy software company into the largest Bitcoin treasury company globally, driven by co-founder Michael Saylor's recognition of the risks associated with holding U.S. dollars and the benefits of Bitcoin's fixed monetary policy and scarcity [1] - MSTR shares have experienced significant volatility, with a 45% decline over the past year due to lower Bitcoin prices and liquidity concerns, making MSTR akin to a leveraged Bitcoin instrument [2] Group 1: Investment Signals - Insider buying has emerged as a positive signal, with Strategy Director Carl Rickersten purchasing nearly $800,000 worth of MSTR shares, indicating confidence in the stock during its dip [3] - Concerns regarding MSTR's potential removal from MSCI indexes have been alleviated, as MSCI announced plans to retain MSTR in its indexes, which is a positive for investor sentiment [4] Group 2: Market Sentiment and Macro Factors - The CoinMarketCap Crypto Fear and Greed Index has reached multi-year lows, indicating extreme fear in the market, which often serves as a contrarian indicator suggesting a potential market bottom [5] - A dovish Federal Reserve is anticipated, with President Trump expected to nominate individuals with dovish monetary policies, which typically encourages investment in risk-on assets like Bitcoin [7] Group 3: Technical Analysis - MSTR shares have retreated to a long-term support area, showing relative strength and surpassing the 50-day moving average, which signals a potential bullish trend change [9] Conclusion - The aggressive Bitcoin treasury model of MSTR has historically resulted in substantial gains but also high volatility. Recent insider buying, continued index inclusion, and favorable macroeconomic shifts suggest that the worst may be over for MSTR [12]

Core Viewpoint - Strive, Inc. has successfully acquired Semler Scientific, Inc., marking a significant milestone as the first acquisition of a publicly traded Bitcoin treasury company, which will enhance Strive's Bitcoin holdings and operational strategy [1][4]. Group 1: Acquisition Details - Semler Scientific stockholders approved the acquisition by Strive, which includes the transfer of 5,048.1 Bitcoin [1]. - Strive has also purchased an additional 123 Bitcoin for its corporate treasury at an average price of $91,561 per Bitcoin, totaling $11,264,000, increasing its total Bitcoin holdings to 7,749.8 [2]. - Post-acquisition, the combined entity will hold 12,797.9 Bitcoin, positioning it as the 11th largest corporate holder of Bitcoin, surpassing both Tesla and Trump Media & Technology Group [2]. Group 2: Financial Strategy - Strive plans to monetize Semler Scientific's operating business within 12 months of the transaction close and aims to retire Semler Scientific's $100 million convertible note and $20 million Coinbase loan, depending on market conditions [3]. - The acquisition is expected to boost Strive's Bitcoin yield to over 15% in the first quarter of 2026, continuing its yield generation strategy since the inception of its Bitcoin operations [4]. - Strive intends to issue more preferred equity (SATA) over the next 12 months to support its strategic goals, including retiring legacy debt [4]. Group 3: Corporate Structure and Governance - Strive is recognized as the second company globally to have a publicly traded perpetual preferred equity instrument (SATA) backed by a Bitcoin balance sheet, offering a unique risk profile to fixed income investors [5]. - A 1-20 reverse stock split for Class A and Class B common stock has been approved to align share prices with institutional participation standards [5][6]. - Following the merger, Semler Scientific's Executive Chairman, Eric Semler, will join Strive's Board of Directors [7]. Group 4: Company Background - Strive, Inc. is the first publicly traded asset management Bitcoin treasury company, currently managing over $2 billion in assets and holding 7,749.8 Bitcoin [8]. - Semler Scientific, Inc. is a leader in medical devices and software for chronic diseases and is the second U.S. public company to adopt Bitcoin as its primary treasury reserve asset [10].

Core Viewpoint - The quantum computing sector, represented by companies like IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc., is facing significant challenges, including ongoing operating losses, cash burn, and unsustainable price-to-sales ratios, indicating a potential bubble in the market [1][3][20]. Quantum Computing Industry - Most analysts believe that quantum computing will take years to solve practical problems more efficiently than classical computers, and further time will be needed for businesses to optimize these technologies for sales and profit [2]. - Despite a remarkable rally of up to 3,080% for quantum computing stocks since October 2024, these companies are still in the early stages of commercializing their products and services [3]. - The arrival of quantum computing is seen as a major trend in 2025, with specialized computers capable of solving complex problems that classical computers cannot handle [4]. Stock Market Trends - The S&P 500 has shown strong performance, climbing by 16% in 2025, marking three consecutive years of gains of 15% or more, a rare occurrence in nearly a century [6][7]. - However, there are growing concerns about historical headwinds that could impact future performance, with predictions that 2026 may be viewed as the "Year of the Bubble" due to multiple potential bubbles in the market [5][20]. Artificial Intelligence Sector - In contrast to quantum computing, the AI sector, led by companies like Nvidia and Palantir Technologies, is experiencing rapid sales growth, indicating a more advanced stage of maturation [8]. - Nvidia's market cap has increased by over $4.1 trillion since early 2023, while Palantir's shares have surged approximately 2,650% [8]. - Despite robust sales of AI hardware, many businesses are still far from optimizing this technology, suggesting a pattern of overestimation in the adoption and utilization of new technologies [9]. Valuation Concerns - The overall stock market is currently considered historically expensive, with the S&P 500's Shiller Price-to-Earnings (P/E) Ratio at 40.66 as of January 8, 2026, making it the second priciest in history [17][18]. - Historical data shows that high Shiller P/E ratios have often preceded significant market declines, indicating that extended valuations may not be sustainable [19].

Core Insights - Metaplanet is rapidly growing its Bitcoin holdings, targeting 210,000 BTC by 2027, which would represent 1% of the total Bitcoin supply, while currently holding 35,102 BTC valued at approximately $3.78 billion [1][6][7] - The company has generated $55 million in revenue for fiscal year 2025 through innovative options-based strategies that monetize Bitcoin volatility without selling the underlying asset [2][5][15] - As regulatory clarity improves, 2026 is expected to see increased corporate adoption of Bitcoin treasury strategies, with Metaplanet's model serving as a template for other companies [4][20][24] Company Strategy - Metaplanet's strategy involves transforming Bitcoin from a passive holding into a productive asset through options and lending strategies [2][15] - The company has pivoted from traditional operations to a Bitcoin-focused treasury model, demonstrating a commitment to aggressive accumulation [3][6] - Metaplanet's revenue generation strategies include lending protocols, covered calls, using Bitcoin as collateral, and carry trades, which have shown significant growth [15][17] Market Position - With the recent purchase of 4,279 BTC for $451 million, Metaplanet has solidified its position as the fourth-largest corporate Bitcoin holder globally [6][7] - The company's average purchase price for Bitcoin is $107,606 per coin, indicating a strategic approach to accumulation [3][7] - Metaplanet's success in combining aggressive accumulation with yield generation is being closely monitored by other companies [4][21] Industry Trends - The trend of corporate Bitcoin treasury adoption is expected to accelerate in 2026, driven by improved regulatory clarity and institutional interest [20][24] - Other companies, such as Marathon Digital and Tesla, are also adopting similar strategies, indicating a broader shift in how corporations view Bitcoin [19][20] - The maturation of custody solutions, lending platforms, and derivatives markets is facilitating sophisticated strategies for Bitcoin investment [22]