MicroStrategy Inc. (Strategy) (MSTR)
NASDAQ
Blockchain
Bitcoin
Investment Thesis
MicroStrategy is a leveraged Bitcoin holding vehicle with a software business attached. CEO Michael Saylor’s thesis: borrow at low fixed rates, buy Bitcoin, hold forever. The premium-to-NAV is a feature, not a bug — it reflects equity holders’ conviction in the strategy. MSTR is the only way to get levered Bitcoin exposure inside a regulated equity account.
Key Drivers
- BTC Accumulation: 214,000+ BTC on balance sheet (May 2025). Every equity raise = more BTC.
- Institutional Wrapper: S&P 500 / Nasdaq-100 inclusion = passive fund buying = price support.
- Leverage Amplification: 2–3× Bitcoin beta in bull markets as premium expands.
Risk Factors
- Forced Liquidation Risk: If BTC falls below debt covenants, selling pressure compounds.
- Premium Collapse: In bear markets the NAV premium inverts — massive drawdowns.