From Yahoo Finance: 2025-06-09 11:45:00

Strategy Incorporated (MSTR) is being highlighted in a bullish thesis by Chris Millas, with shares trading at $378.10. The company has shifted its focus to become a leading corporate Bitcoin treasury, attracting all types of investors and maximizing Bitcoin Per Share and Bitcoin Yield through financial instruments.

The firm utilizes a variety of capital levers, such as convertible bonds and preferred equities, to convert fiat into Bitcoin without straining the balance sheet. Strategy’s preference for preferred equity over traditional debt offers flexibility, preserving balance sheet strength and creditworthiness. The company’s use of volatility in its share price is strategic, accelerating bond conversions and attracting convertible arbitrage traders.

Despite the speculative nature of Bitcoin, Strategy’s debt is not backed by Bitcoin collateral, providing protection against margin calls. With unencumbered Bitcoin reserves and investor products designed for various risk appetites, Strategy aims to outperform Bitcoin itself as it moves towards a Bitcoin Standard. Hedge funds have decreased their holdings in MSTR, with only 33 portfolios holding the stock at the end of the first quarter.

While there are differing opinions on MSTR’s future, some believe that investing in other AI stocks may offer better returns with less downside risk. For those interested in AI stocks with potential for high returns and benefiting from current economic trends, a free report on the best short-term AI stock is available. Investors are encouraged to explore other investment options aside from MSTR.



Read more at Yahoo Finance: Strategy Incorporated (MSTR): A Bull Case Theory