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Strategy Inc (NasdaqGS:MSTR) continues to accumulate Bitcoin during a period of heightened crypto market volatility and significant unrealized losses.
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The company is funding additional Bitcoin purchases through perpetual preferred shares, branded as Stretch, to limit dilution for existing common shareholders.
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Executive Chairman Michael Saylor reiterates a commitment to holding and expanding the company’s Bitcoin reserves while advocating for Bitcoin at the government level.
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Strategy Inc is also pushing back against potential index exclusion, highlighting its role in broader institutional adoption of digital assets.
For you as an investor, Strategy Inc effectively functions as a Bitcoin-focused operating company with an additional layer of corporate financing on top. The Stretch perpetual preferred shares give it another tool to raise capital for Bitcoin purchases while aiming to protect common shareholders from large equity issuances. This approach keeps Bitcoin at the core of the NasdaqGS:MSTR story, even as crypto markets experience sharp price moves.
Looking ahead, the key questions are how long the company continues this aggressive accumulation playbook and how the market prices both its Bitcoin holdings and its new Stretch structure. Policy outreach and the fight against index exclusion add a regulatory and market-structure angle that could shape how institutional investors view NasdaqGS:MSTR as a vehicle for digital asset exposure.
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For existing and potential shareholders, this news reinforces that Strategy is effectively a leveraged Bitcoin vehicle layered on top of a software business. The company reported a full year 2025 net loss of US$3,848.15 million and continues to carry very large unrealized losses on its Bitcoin stack, yet it still bought more than 1,100 BTC this week for roughly US$90 million and funds further purchases through Stretch perpetual preferred shares. That signals management is prioritizing long term Bitcoin exposure over near term earnings optics. The Stretch structure, which recently traded back to its US$100 par with an 11.25% monthly dividend rate, suggests there is a segment of the market willing to finance this approach, even after share-price volatility, index-exclusion debates and sharp analyst price target cuts. At the same time, critics such as Jim Chanos highlight concerns that emphasizing preferred stability while common equity swings with Bitcoin could mask risk. For you, the key takeaway is that investor activity around Strategy is increasingly binary, with bulls treating it as a Bitcoin treasury with long-dated financing and bears focused on the scale of losses and dilution.
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⚠️ Very high exposure to Bitcoin price moves, with Q4 and full year 2025 losses driven largely by mark to market writedowns on a Bitcoin position that is currently underwater.
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⚠️ Shareholders have already experienced substantial dilution over the past year, and continued use of equity and Stretch preferreds to fund Bitcoin purchases could further pressure existing holders.
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🎁 Strategy is the largest corporate holder of Bitcoin globally, which may appeal to investors seeking concentrated Bitcoin exposure through a listed stock rather than holding the token directly.
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🎁 Management highlights long dated, low interest convertible debt and excess Bitcoin reserves as buffers, with no margin call triggers at current levels and an internal stress floor around US$8,000 per BTC before net debt coverage becomes an issue.
From here, it makes sense to watch three things closely. First, how aggressively Strategy continues to add Bitcoin during volatility, including the size and pricing of any new Stretch preferred offerings or share issuances. Second, any changes in management’s tone about that US$8,000 per BTC stress level and the refinancing options they reference if Bitcoin were to move closer to that mark. Third, how broader market sentiment toward Bitcoin linked equities evolves, particularly as analysts recalibrate ratings and price targets and as index providers revisit treatment of crypto treasury companies. All of these will feed directly into how the market values both Strategy’s Bitcoin and its capital structure.
To ensure you’re always in the loop on how the latest news impacts the investment narrative for Strategy, head to the community page for Strategy to never miss an update on the top community narratives.
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.
Companies discussed in this article include MSTR.
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