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• Strategy Inc. (NasdaqGS:MSTR) is continuing to issue new equity and preferred stock to buy additional Bitcoin, expanding its corporate holdings of the cryptocurrency.
• The company’s approach is drawing attention as its share price trades at $161.58 and investors weigh dilution risks against its Bitcoin accumulation focus.
For you as a shareholder or potential investor, the key context is that Strategy, trading at $161.58, has become one of the largest public corporate holders of Bitcoin by repeatedly tapping equity and preferred stock markets. The stock has had a very large 3 year return and a 134.9% return over 5 years, but also a 51.9% decline over the past year, which frames current debate about dilution and confidence in the equity story.
Looking ahead, the big questions are how long Strategy can rely on fresh share and debt issuance to grow its Bitcoin reserves and how investors will price the stock if it continues to trade at a discount to the value of its underlying holdings. As the company keeps pursuing this balance sheet model through different market cycles, you may want to watch insider activity, capital raising terms, and any shifts in management’s commitment to this Bitcoin heavy approach.
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Why Strategy could be great value
• ? Price vs Analyst Target: At US$161.58, the share price is about 66% below the US$474.31 analyst target.
• ? Simply Wall St Valuation: Simply Wall St estimates the shares trade about 42.1% below fair value, flagged as undervalued.
• ? Recent Momentum: The 30 day return of roughly 1.7% is slightly positive.
Check out Simply Wall St's in depth valuation analysis for Strategy.
• ? The ongoing use of equity and preferred stock to buy more Bitcoin ties your outcome closely to both Bitcoin prices and future capital raising conditions.
• ? Keep an eye on share count growth, insider transactions, and any update on how management balances Bitcoin exposure with core software operations.
• ?? The combination of shareholder dilution over the past year and high non cash earnings is a key risk to understand before relying on headline profit figures.
For the full picture including more risks and rewards, check out the complete Strategy analysis.