Ticker

Strategy (for which I said “Sell” on 2/13/26), is more than just a stock or even bitcoin play. It's actually the parent of four high-yielding children, more specifically preferred stocks. I can dislike parent MSTR but still like one or more of its children. It's like me being a customer of Citigroup and Schwab but hating bank and brokerage stocks. My favorite child, and I think MSTR's favorite too, is a so-called…

Strategy Inc (MSTR) Q4 2025 Earnings Call Transcript

MicroStrategy (MSTR) has seen its Bitcoin-as-a-Treasury strategy falter, eroding the premium that has fueled rapid BTC accumulation via equity issuance. MSTR's market-adjusted net asset value (mNAV) has declined to 1.07, making further equity issuance more dilutive and less accretive for BTC purchases. The 10% Series A Perpetual Stride Preferred (STRD) offers substantial income with clearly defined risks, though…

Strategy's preferred stocks are evaluated, with a focus on STRC, STRK, STRF, and STRD for investment merit. MSTR's business model relies on capital raises to accumulate Bitcoin, lacking operational income to support fixed obligations during BTC downturns. STRD is rated Buy among the preferreds, despite lacking cumulative dividends or conversion features, due to its risk/reward profile and current market pricing.

Strategy has seen its market-adjusted net asset value dip to 1.16x as BTC prices dropped 24% from their 52-week highs. MSTR's most recent BTC purchase brought its total to 650,000, currently valued at around $61 billion at an average price of $74,436 per BTC. The company faces an annual coupon bill on its universe of preferreds of around $807 million, ramping up the risk of a BTC winter.