Latest news with #StrategyInc
Yahoo
4 days ago
- Business
- Yahoo
Tom Lee Believes Strategy Could Become The Biggest Company If Bitcoin Hits $1 Million: Michael Saylor Is 'Changing The Reality' Of The Stock Market
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Financial analyst Tom Lee predicted Tuesday that Michael Saylor-led Strategy Inc. (NASDAQ:MSTR) could become the largest company in the stock market, especially if Bitcoin (CRYPTO: BTC) hits $1 million. MSTR stock tumbled in Tuesday's session. Track it now here. Strategy: The New Exxon Mobil? During an interaction with podcaster Natalie Brunell, Lee said that Saylor is "changing the reality" of the stock market, steering a firm whose valuation is largely derived from its balance sheet, stacked up with Bitcoin, rather than net income. Trending: The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market — "But that's not new to history," The Fundstrat co-founder said. He remembered how Exxon Mobil Corp. (NYSE:XOM), which he said was valued solely on the value of oil, remained one of the top stocks in the market for nearly 30 years. "For a whole generation people said Exxon was the biggest company but you don't value on earnings," Lee said. "So Strategy is replacing Exxon in lower." Saylor Says Company's Capital Structure Smooth But... Strategy has spearheaded Bitcoin's corporate adoption, building a $70 billion reserve with proceeds from common stock, preferred stock and convertible bond issuances. The stock has soared in value since pivoting to a BTC treasury strategy. Lee said last month that the astronomical jump in share price was due not just to the rise in BTC's value but also to the corporate maneuvers it adopted. During the company's second-quarter earnings call, Saylor said that the company's structure is smooth and it can endure an 80% BTC drawdown. However, the approach continued to face its share of criticism. Veteran short seller Jim Chanos suggests that the stock's premium over Bitcoin's value is not justified, and has adopted an arbitrage trade that involves shorting Strategy's stock while buying Bitcoin. Photo courtesy: PJ McDonnell / Read Next: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? This article Tom Lee Believes Strategy Could Become The Biggest Company If Bitcoin Hits $1 Million: Michael Saylor Is 'Changing The Reality' Of The Stock Market originally appeared on
Yahoo
5 days ago
- Business
- Yahoo
Peter Schiff Says Gold Outperformed Bitcoin, Michael Saylor's Strategy Since Trump's Win — Here Is The Bigger Picture
Bitcoin (CRYPTO: BTC) and its proxy stock Strategy Inc. (NASDAQ:MSTR) have underperformed gold since President Donald Trump's victory in November of last year, economist Peter Schiff highlighted on Tuesday. Gold Outgains 'Digital Gold' In an X post, Schiff took the end of November as the reference point and highlighted the superior returns of gold and VanEck Gold Miners ETF (NYSE:GDX) vis-à-vis Bitcoin he did not specify a date, for the sake of this analysis, let us fix Nov. 30 as the reference. Clearly, the returns are similar to what he Price (Recorded on Nov. 30, 2024) Price (Recorded at 1:00 am p.m. ET) Gains +/- Bitcoin $97,468.81 $113,677 +16.63% Strategy Inc $387.47 $375.46 -3.09% Spot Gold $2653.54 $3,372.62 +27% VanEck Gold Miners ETF $37.66 $56.46 +49.92% Who's The Winner On A Longer Timeframe? Schiff, a vocal gold advocate, has long been accused of cherry-picking time frames according to his convenience to downplay Bitcoin's returns. Popular Bitcoin-focused X handle The ₿itcoin Therapist dared Schiff to zoom out and compare the returns over the last 10 years. Notably, the apex cryptocurrency has soared 42,934% in this period, while gold has returned only 208%.Moreover, if we compare the yearly performance, Bitcoin and MSTR have netted returns of 102% and 174%, respectively, compared to 41% for Price (Recorded on Aug.6, 2024) Price (Recorded at 1:00 am p.m. ET) Gains +/- Bitcoin $56,040 $113,677 +102.84% Strategy Inc $136.92 $375.46 +174.21% Spot Gold $2381.53 $3,372.62 +41.61% VanEck Gold Miners ETF $35.63 $56.46 +58.46% Bitcoin, which has been marketed as a safe-haven investment by its supporters, struggled earlier this year due to Trump's sweeping tariffs and behaved like a risk-on asset. Gold, on the other hand, held to its inflation hedge tag, rallying while stocks and cryptocurrencies tumbled. Year-to-date, spot gold rose nearly 27%, while Bitcoin has gained 20%. As of this writing, the MSTR demonstrated a very high Momentum score. Visit Benzinga Edge Stock Rankings to see how it compares with the VanEck Gold Miners ETF. Photo Courtesy: seven xu on Read Next: Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Peter Schiff Says Gold Outperformed Bitcoin, Michael Saylor's Strategy Since Trump's Win — Here Is The Bigger Picture originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
28-07-2025
- Business
- Yahoo
MSTR Introduces New Preferred Stock With Initial 9% Dividend
Strategy Inc. (MSTR), the Bitcoin treasury company that recently rebranded from enterprise software firm MicroStrategy, is introducing a variable-rate preferred stock with an initial dividend of 9% per year. The 'Stretch' stock STRC's public offering price is $90 per share, and the firm estimates that the net proceeds from the offering will be approximately $2.5 billion, according to a press release published Friday. STRC's Intent and Risks The stated intent is that the rate on the preferred stock will be adjusted to keep the market price of the shares at around $100. 'If the shares are trading below that, they would raise the yield to increase demand, and the inverse would be true if they are trading above the target,' Michael Miller, an equity analyst at Morningstar, explained to 'That said, there are restrictions on how fast and far the yield can be reduced, which does provide some stability to investors.' Top ETFs Holding MSTR Ticker Fund Name Segment % Allocation Market Value # of Shares 30 Day MSTU T-Rex 2X Long MSTR Daily Target ETF MicroStrategy Inc - Benchmark Price Return 82.68% $2.98B 7.33M 6.04 BCOR Grayscale Bitcoin Adopters ETF Indxx Bitcoin Adopters Index - Benchmark TR Net 20.62% $922.37K 2.22K 7.3 CRPT First Trust SkyBridge Crypto Industry & Digital Economy ETF No Underlying Index 19.27% $30.45M 75.03K 8.75 OWNB Bitwise Bitcoin Standard Corporations ETF Bitwise Bitcoin Standard Corporations Index - Benchmark TR Net 18.73% $6.64M 16.37K 11.63 MSTW Roundhill MSTR WeeklyPay ETF No Underlying Index 12.85% $64.73K 156.00 0 Source: & FactSet Still, Miller said he would caution investors that there is meaningful risk to an investment like this, and he would 'categorically reject any direct comparison to a money market fund.' (Bitcoin-focused financial services firm NYDIG described the stock as a 'money-market-style vehicle.') Milled explained that while Strategy has significant Bitcoin assets, which at current prices can fully cover all of its outstanding debt and preferred offerings many times over, STRC won't have a direct claim on any specified portion of those assets. There's also the fact that Bitcoin's price is extremely volatile. 'This means that the issuer, MSTR, can continue to issue new debt and preferred shares on top of this offering. Additionally, MSTR doesn't actually have the earnings to cover the dividend payments on STRC,' Miller said. 'The assumption is that appreciation on the Bitcoin purchased will be sufficient to provide the cash needed, but this creates long-term risk for investors that the dividends could be cut or suspended if Bitcoin prices fall.' MSTR-Related ETFs STRC is just the latest way for investors to get exposure to the Bitcoin treasury company. Earlier this month, Roundhill Investments launched the Roundhill MSTR WeeklyPay ETF (MSTW), joining the firm's suite of WeeklyPay exchange-traded funds, which offer investors weekly income plus exposure to amplified returns of single stocks. Meanwhile, the YieldMax MSTR Option Income Strategy ETF (MSTY), designed to generate high income through a covered call strategy on MSTR stock, was a nominee for Best New ETF at this year's Awards. Strategy didn't immediately respond to request for commentary on STRC. Permalink | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-07-2025
- Business
- Yahoo
MSTR Introduces New Preferred Stock With Initial 9% Dividend
Strategy Inc. (MSTR), the Bitcoin treasury company that recently rebranded from enterprise software firm MicroStrategy, is introducing a variable-rate preferred stock with an initial dividend of 9% per year. The 'Stretch' stock STRC's public offering price is $90 per share, and the firm estimates that the net proceeds from the offering will be approximately $2.5 billion, according to a press release published Friday. STRC's Intent and Risks The stated intent is that the rate on the preferred stock will be adjusted to keep the market price of the shares at around $100. 'If the shares are trading below that, they would raise the yield to increase demand, and the inverse would be true if they are trading above the target,' Michael Miller, an equity analyst at Morningstar, explained to 'That said, there are restrictions on how fast and far the yield can be reduced, which does provide some stability to investors.' Top ETFs Holding MSTR Ticker Fund Name Segment % Allocation Market Value # of Shares 30 Day MSTU T-Rex 2X Long MSTR Daily Target ETF MicroStrategy Inc - Benchmark Price Return 82.68% $2.98B 7.33M 6.04 BCOR Grayscale Bitcoin Adopters ETF Indxx Bitcoin Adopters Index - Benchmark TR Net 20.62% $922.37K 2.22K 7.3 CRPT First Trust SkyBridge Crypto Industry & Digital Economy ETF No Underlying Index 19.27% $30.45M 75.03K 8.75 OWNB Bitwise Bitcoin Standard Corporations ETF Bitwise Bitcoin Standard Corporations Index - Benchmark TR Net 18.73% $6.64M 16.37K 11.63 MSTW Roundhill MSTR WeeklyPay ETF No Underlying Index 12.85% $64.73K 156.00 0 Source: & FactSet Still, Miller said he would caution investors that there is meaningful risk to an investment like this, and he would 'categorically reject any direct comparison to a money market fund.' (Bitcoin-focused financial services firm NYDIG described the stock as a 'money-market-style vehicle.') Milled explained that while Strategy has significant Bitcoin assets, which at current prices can fully cover all of its outstanding debt and preferred offerings many times over, STRC won't have a direct claim on any specified portion of those assets. There's also the fact that Bitcoin's price is extremely volatile. 'This means that the issuer, MSTR, can continue to issue new debt and preferred shares on top of this offering. Additionally, MSTR doesn't actually have the earnings to cover the dividend payments on STRC,' Miller said. 'The assumption is that appreciation on the Bitcoin purchased will be sufficient to provide the cash needed, but this creates long-term risk for investors that the dividends could be cut or suspended if Bitcoin prices fall.' MSTR-Related ETFs STRC is just the latest way for investors to get exposure to the Bitcoin treasury company. Earlier this month, Roundhill Investments launched the Roundhill MSTR WeeklyPay ETF (MSTW), joining the firm's suite of WeeklyPay exchange-traded funds, which offer investors weekly income plus exposure to amplified returns of single stocks. Meanwhile, the YieldMax MSTR Option Income Strategy ETF (MSTY), designed to generate high income through a covered call strategy on MSTR stock, was a nominee for Best New ETF at this year's Awards. Strategy didn't immediately respond to request for commentary on STRC. Permalink | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Int'l Business Times
26-07-2025
- Business
- Int'l Business Times
Michael Saylor's Strategy Inc. Ups Its Bitcoin War Chest to $2 Billion
Michael Saylor isn't letting up on his Bitcoin thesis and this week, he proved it again. His firm, Strategy Inc. (formerly known as MicroStrategy), has expanded its latest preferred equity raise from $500 million to a staggering $2 billion, doubling down on its long-standing mission: accumulate as much Bitcoin as possible, and never sell. These Series A Perpetual Stretch Preferred Shares offer a 9% dividend and will be priced below face value, making them appealing to yield-hungry investors who want Bitcoin exposure without touching BTC directly. The raise is being underwritten by Morgan Stanley, Barclays, Moelis & Co., and TD Securities, with 5 million preferred shares on offer. These shares rank senior to Strategy's common stock and some preferreds, but remain junior to existing convertible debt. Michael Saylor: Why This Move Matters for Bitcoin and Institutional Adoption As of now, Strategy Inc. holds 607,770 BTC, worth around $72.4 billion—that's over 3% of Bitcoin's circulating supply. If this $2 billion raise goes toward more purchases, Saylor's company will deepen its already aggressive position. This strategy isn't random. Saylor has called it a "quadratically reflexive, engineered instrument," meaning Strategy raises capital during favorable market conditions, then uses that capital to buy Bitcoin—boosting both its holdings and, theoretically, its stock price. It's a flywheel model: Raise capital while MSTR trades high. Buy more BTC. Watch BTC (and MSTR) rise. Repeat. It's bold. It's controversial. But so far, it's worked. Saylor's Playbook: Be the Bitcoin ETF Before Bitcoin ETFs Exist At the time of writing, Bitcoin is hovering around $115,300, down slightly on the day. Strategy shares closed Thursday at $412.31 and dipped 0.44% in after-hours trading. Despite the mild pullback, broader sentiment remains positive. The move signals growing institutional confidence in Bitcoin, especially as macro investors eye crypto hedges against monetary debasement and inflationary pressure. While spot BTC ETFs have become a hot topic in 2025, Strategy has long served as a de facto Bitcoin ETF for institutions, especially those unable or unwilling to custody Bitcoin themselves. The preferred equity route now provides another mechanism for exposure—this time, with guaranteed yield. Saylor's bet is that Bitcoin will become the backbone of corporate treasury reserves, and his company is the test case. Whether it pays off in the long run depends on the market's continued appetite for BTC—and whether competitors emerge with similar hybrid investment models. Final Take: The Mad Genius of a Bitcoin Maximalist With each passing raise, Michael Saylor moves deeper into uncharted territory. Strategy's balance sheet is now functionally tied to Bitcoin's performance. If BTC booms, shareholders win. If not, the risk is outsized. But that's the thing about Saylor—he's not hedging. He's all in. In the eyes of crypto believers, that makes him a visionary. In the eyes of skeptics, a gambler. Either way, Wall Street just handed him another $2 billion to keep playing.
