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In recent days, Strategy Inc. paused its aggressive Bitcoin purchases and instead raised about US$748 million via common stock sales, lifting its U.S. dollar reserve to roughly US$2.19 billion to cover dividends and debt without liquidating crypto holdings.
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This shift from constant Bitcoin accumulation to building a sizeable cash buffer marks a material change in how Strategy balances crypto exposure with liquidity and index-related risks.
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We’ll now examine how this move to prioritize a larger cash reserve over immediate Bitcoin buying reshapes Strategy’s investment narrative.
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To own Strategy today you still have to buy into the idea that this is effectively a leveraged Bitcoin operating company, not a conventional software stock, with earnings driven far more by BTC mark‑to‑market than Mosaic’s modestly growing revenue. The main short term catalysts remain Bitcoin price moves, the looming MSCI index decision and access to fresh capital, while recent underperformance versus both the market and software peers shows how painful that linkage can be on the downside. The decision to pause BTC buying and lift the USD reserve to roughly US$2.19 billion is material, because it reduces near term refinancing and dividend stress, directly addresses concerns about forced Bitcoin sales and partially reframes the story around balance sheet resilience instead of pure accumulation, even as dilution and index‑exclusion risk stay front and center.
However, the dilution required to build that “safety net” is something investors should not ignore. Our valuation report here indicates Strategy may be undervalued.
Eight fair value estimates from the Simply Wall St Community cluster between about US$490 and US$705 per share. That spread sits against a business whose biggest near term swing factor is still Bitcoin, even after the recent move to shore up more than US$2.19 billion of cash, which could change how quickly any BTC rally or setback flows through to shareholders. Readers can weigh those contrasting views alongside the evolving balance between crypto exposure and liquidity.
Explore 8 other fair value estimates on Strategy – why the stock might be worth over 4x more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MSTR.
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