Strategy Bitcoin Bet Grows As Preferred Funding And Stream Challenges Mount

• Strategy, listed as NasdaqGS:MSTR, purchased 22,305 Bitcoins for about US$2.13b, its largest weekly buy since 2024.
• The company is leaning further into preferred equity funding, including a uniquely structured capital stack.
• Its non U.S. Stream (STRE) perpetual preferred product has struggled to gain traction and was removed from the company dashboard.

At a share price of US$163.11, NasdaqGS:MSTR sits after a 3 year return that is very large, and a 5 year return of 164.2%. More recently, the stock shows a 7 day return of a 6.1% decline and a 1 year return of a 53.9% decline, which frames a very different recent experience for holders compared with the longer term record.

For you as an investor, the combination of a multi billion dollar Bitcoin purchase and heavier use of preferred equity funding raises fresh questions about risk tolerance, funding flexibility, and dilution trade offs. The issues around the Stream product and limited global investor access also put a spotlight on how easily Strategy can keep raising capital to support future Bitcoin accumulation.

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Why Strategy could be great value

Quick Assessment

• ✅ Price vs Analyst Target: At US$163.11, the share price sits well below the US$475.54 analyst target range midpoint.
• ❌ Simply Wall St Valuation: Valuation status is unknown, with no DCF data available to cross check the P/E of 6.8x.
• ✅ Recent Momentum: The 30 day return of 2.71% is positive, even with recent share price volatility.

Check out Simply Wall St’s
in depth valuation analysis for Strategy.

Key Considerations

• 📊 The US$2.13b Bitcoin purchase further ties your investment case to Bitcoin price moves and the success of leveraged funding.
• 📊 Keep an eye on share count trends, preferred equity issuance and how closely the price tracks Bitcoin over time.
• ⚠️ The company has issued new shares in the past year and carries high non cash earnings, which can make headline profit less straightforward to interpret.

Dig Deeper

For the full picture including more risks and rewards, check out the
complete Strategy analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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