Strategy is focusing on buying Bitcoin and repaying institutional investors with a cash reserve fund. Stock performance has soared with over 1,000% growth since purchasing Bitcoin. However, the method of raising funds, including debt, notes, and share issuance, raises concerns about diluting shareholders. Strategy prioritizes Bitcoin over common shareholders.

Despite Strategy’s success, it may struggle in a bear market. The company has amassed 650,000 Bitcoins worth $55 billion with over $48 billion invested from public and private investors. Strategy’s recent creation of a $1.4 billion cash reserve fund indicates a belief in future funding challenges. Share dilution and debt accumulation could pose risks for common shareholders.

Investing in Bitcoin directly or through an ETF may be more favorable than buying Strategy stock. The company’s focus on Bitcoin and institutional investors over common shareholders, along with heavy debt and share dilution, raises concerns. The Motley Fool’s top 10 stock picks exclude Strategy, emphasizing potential returns with other investments.

Read more at Nasdaq: Why I’m Never Buying Strategy Stock