MicroStrategy Shifts Strategy: Actively Managing Bitcoin Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy MSTR?
Source: CNBC
- Strategic Shift: MicroStrategy announces a transition from passive bitcoin accumulation to actively managing its balance sheet to maximize bitcoin value per share, reflecting the company's adaptability to market fluctuations.
- Financial Loss: The company reported a net loss of $12.5 billion in the first quarter, primarily due to a slump in bitcoin prices, prompting management to reconsider its longstanding 'never sell' strategy.
- Dollar Reserve Establishment: MicroStrategy has established a $2.25 billion U.S. dollar reserve to ensure it can meet obligations for preferred stock dividends and debt interest, demonstrating its focus on liquidity.
- Bitcoin Holdings: As of the end of the first quarter, the company holds 818,334 BTC valued at $61.81 billion, accounting for nearly 4% of the total bitcoin supply, and has acquired approximately 63,000 BTC year-to-date, indicating its ongoing commitment to the bitcoin market.
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Analyst Views on MSTR
Wall Street analysts forecast MSTR stock price to rise
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 179.840
Low
229.00
Averages
453.17
High
705.00
Current: 179.840
Low
229.00
Averages
453.17
High
705.00
About MSTR
Strategy Inc. is a bitcoin treasury and business intelligence company. The Company provides cloud-native, artificial intelligence (AI)-powered enterprise analytics software to thousands of global customers. Its Software Business segment is engaged in the design, development, marketing, and sales of enterprise analytics software platform through cloud subscriptions and licensing arrangements and related services. Its Strategy ONE platform provides access to AI-powered workflows, unlimited data sources, cloud-native technologies, and performance to speed up time from data to action. Strategy One delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, healthcare, public sector, and others. Its Strategy Mosaic is a universal intelligence layer that provides enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Strategy's New Capital Decision Metric: Bitcoin Per Share
- New Capital Metric: Strategy Chairman Michael Saylor stated that ‘Bitcoin per share (BPS) is EPS on the Bitcoin Standard,’ indicating that this metric will guide the company's capital, equity, and debt decisions, highlighting the firm's focus on Bitcoin.
- Significant Loss Impact: The company reported a net loss of $12.54 billion in Q1 2026, primarily due to a $14.46 billion unrealized loss on Bitcoin holdings, reflecting the substantial impact of cryptocurrency market fluctuations on its financial health.
- Dividend Payment Strategy: CEO Phong Le mentioned that the company would sell some Bitcoin to finance dividends when the market net asset value (mNAV) falls below 1.0, marking a significant shift in capital management strategy that could affect shareholder returns.
- Emergence of Digital Credit: Over the past 10 months, Strategy raised $8.5 billion through a perpetual preferred stock instrument called Stretch, which offers an 11.5% monthly cash dividend, demonstrating the company's innovative capital structure and focus on future cash flow sustainability.
See More
Rapid Growth of Bitcoin ETF Market
- Surge in ETF Offerings: There are now over a dozen spot Bitcoin ETFs available, led by the iShares Bitcoin Trust, which boasts more than $61 billion in assets under management, reflecting strong investor interest and demand for Bitcoin exposure.
- Low Management Fees: Most spot Bitcoin ETFs charge very low management fees, with the iShares Bitcoin Trust at 0.25% annually and the Morgan Stanley Bitcoin Trust at just 0.14%, making it easier for individual investors to participate in the market.
- Increased Investment Accessibility: Spot Bitcoin ETFs can be purchased through traditional brokerage accounts, simplifying the investment process and eliminating the need for crypto expertise, thereby lowering the barriers to entry and promoting wider adoption.
- Positive Market Response: Since the launch of the first spot Bitcoin ETF in January 2024, these funds have attracted over $100 billion in investments within a year, indicating strong market recognition and confidence in this emerging investment vehicle.
See More
U.S. Senate to Consider Cryptocurrency Regulatory Framework Next Week
- Regulatory Framework Review: The U.S. Senate Banking Committee is set to meet on May 14 to discuss the 'Clarity Act', a move that could break the legislative deadlock between digital asset firms and traditional banks, and if passed, would provide legal certainty crucial for the industry's future.
- Stablecoin Provisions: A central feature of the bill involves dollar-backed stablecoins, prohibiting crypto companies from offering rewards on idle holdings to prevent similarities with traditional bank deposits, while allowing rewards for active use, which has sparked a last-ditch effort by banking lobbyists to garner Republican support.
- Political Support Requirement: To gain final approval from President Trump, the Act requires support from at least seven Democrats in the Senate, despite the House passing its version last year, with a deadline for Senate approval set for the end of 2026 to send it to the President's desk.
- Opposition Voices: Several Democrats oppose the bill, arguing that its anti-money laundering provisions are too weak and that more should be done to prevent political officials from profiting from crypto ventures, which could impact the bill's chances of passing.
See More
UBS Group Boosts Its Investment in MSTR by 551,121 Shares Valued at Around $98 Million
UBS Group's Shareholding Increase: UBS Group has increased its holdings of Strategy stock (MSTR) by acquiring 551,121 shares, valued at approximately $98 million.
Total Holdings of MSTR Stock: The bank currently holds a total of 6.31 million shares of MSTR stock, with an overall holding value of about $1.12 billion.
See More
Bitcoin ETFs Attract Over $100 Billion in Investments
- ETF Investment Surge: Since their launch in January 2024, spot Bitcoin ETFs have rapidly attracted over $100 billion in investments, indicating strong market interest and demand for Bitcoin, further driving its mainstream adoption.
- iShares Bitcoin Trust: As the most popular spot Bitcoin ETF, the iShares Bitcoin Trust has over $61 billion in assets under management, serving as a key indicator of changes in investor sentiment and reflecting confidence in Bitcoin's future.
- Management Fee Advantage: Most Bitcoin ETFs charge very low management fees, with the iShares Bitcoin Trust at 0.25% annually and the Morgan Stanley Bitcoin Trust even lower at 0.14%, making these investment vehicles appealing to individual investors.
- Traditional Brokerage Accessibility: Spot Bitcoin ETFs can be easily purchased through traditional brokerage accounts, eliminating the need for cryptocurrency expertise, although some brokerage firms have restricted access to these ETFs due to associated risks.
See More
Strategy May Sell Bitcoin to Fund Dividends Amid Financial Strain
- Dividend Payment Pressure: Strategy faces a significant financial strain with annual dividend obligations of approximately $1.2 billion, while its software business generates only $124 million in revenue, indicating a potential need to sell Bitcoin to meet shareholder returns.
- Massive Bitcoin Holdings: With 818,334 bitcoins representing 3.9% of total supply, a mere 1% sale (around 8,200 coins) could cover more than two quarters of dividend payouts, having minimal impact on its overall position.
- Market Stabilization Strategy: Saylor's mention of 'inoculating the market' suggests a calculated approach to sell small amounts of Bitcoin to stabilize prices and prevent panic, thereby ensuring future sales do not adversely affect the company's stock price.
- Risks and Opportunities: While Strategy's potential sales may influence market sentiment, the fundamental case for Bitcoin remains strong with the upcoming 2028 halving and increasing institutional adoption, encouraging investors to continue holding Bitcoin for long-term growth potential.
See More
Strategy's New Capital Decision Metric: Bitcoin Per Share
- New Capital Metric: Strategy Chairman Michael Saylor stated that ‘Bitcoin per share (BPS) is EPS on the Bitcoin Standard,’ indicating that this metric will guide the company's capital, equity, and debt decisions, highlighting the firm's focus on Bitcoin.
- Significant Loss Impact: The company reported a net loss of $12.54 billion in Q1 2026, primarily due to a $14.46 billion unrealized loss on Bitcoin holdings, reflecting the substantial impact of cryptocurrency market fluctuations on its financial health.
- Dividend Payment Strategy: CEO Phong Le mentioned that the company would sell some Bitcoin to finance dividends when the market net asset value (mNAV) falls below 1.0, marking a significant shift in capital management strategy that could affect shareholder returns.
- Emergence of Digital Credit: Over the past 10 months, Strategy raised $8.5 billion through a perpetual preferred stock instrument called Stretch, which offers an 11.5% monthly cash dividend, demonstrating the company's innovative capital structure and focus on future cash flow sustainability.
See More
Rapid Growth of Bitcoin ETF Market
- Surge in ETF Offerings: There are now over a dozen spot Bitcoin ETFs available, led by the iShares Bitcoin Trust, which boasts more than $61 billion in assets under management, reflecting strong investor interest and demand for Bitcoin exposure.
- Low Management Fees: Most spot Bitcoin ETFs charge very low management fees, with the iShares Bitcoin Trust at 0.25% annually and the Morgan Stanley Bitcoin Trust at just 0.14%, making it easier for individual investors to participate in the market.
- Increased Investment Accessibility: Spot Bitcoin ETFs can be purchased through traditional brokerage accounts, simplifying the investment process and eliminating the need for crypto expertise, thereby lowering the barriers to entry and promoting wider adoption.
- Positive Market Response: Since the launch of the first spot Bitcoin ETF in January 2024, these funds have attracted over $100 billion in investments within a year, indicating strong market recognition and confidence in this emerging investment vehicle.
See More
U.S. Senate to Consider Cryptocurrency Regulatory Framework Next Week
- Regulatory Framework Review: The U.S. Senate Banking Committee is set to meet on May 14 to discuss the 'Clarity Act', a move that could break the legislative deadlock between digital asset firms and traditional banks, and if passed, would provide legal certainty crucial for the industry's future.
- Stablecoin Provisions: A central feature of the bill involves dollar-backed stablecoins, prohibiting crypto companies from offering rewards on idle holdings to prevent similarities with traditional bank deposits, while allowing rewards for active use, which has sparked a last-ditch effort by banking lobbyists to garner Republican support.
- Political Support Requirement: To gain final approval from President Trump, the Act requires support from at least seven Democrats in the Senate, despite the House passing its version last year, with a deadline for Senate approval set for the end of 2026 to send it to the President's desk.
- Opposition Voices: Several Democrats oppose the bill, arguing that its anti-money laundering provisions are too weak and that more should be done to prevent political officials from profiting from crypto ventures, which could impact the bill's chances of passing.
See More
UBS Group Boosts Its Investment in MSTR by 551,121 Shares Valued at Around $98 Million
UBS Group's Shareholding Increase: UBS Group has increased its holdings of Strategy stock (MSTR) by acquiring 551,121 shares, valued at approximately $98 million.
Total Holdings of MSTR Stock: The bank currently holds a total of 6.31 million shares of MSTR stock, with an overall holding value of about $1.12 billion.
See More
Bitcoin ETFs Attract Over $100 Billion in Investments
- ETF Investment Surge: Since their launch in January 2024, spot Bitcoin ETFs have rapidly attracted over $100 billion in investments, indicating strong market interest and demand for Bitcoin, further driving its mainstream adoption.
- iShares Bitcoin Trust: As the most popular spot Bitcoin ETF, the iShares Bitcoin Trust has over $61 billion in assets under management, serving as a key indicator of changes in investor sentiment and reflecting confidence in Bitcoin's future.
- Management Fee Advantage: Most Bitcoin ETFs charge very low management fees, with the iShares Bitcoin Trust at 0.25% annually and the Morgan Stanley Bitcoin Trust even lower at 0.14%, making these investment vehicles appealing to individual investors.
- Traditional Brokerage Accessibility: Spot Bitcoin ETFs can be easily purchased through traditional brokerage accounts, eliminating the need for cryptocurrency expertise, although some brokerage firms have restricted access to these ETFs due to associated risks.
See More
Strategy May Sell Bitcoin to Fund Dividends Amid Financial Strain
- Dividend Payment Pressure: Strategy faces a significant financial strain with annual dividend obligations of approximately $1.2 billion, while its software business generates only $124 million in revenue, indicating a potential need to sell Bitcoin to meet shareholder returns.
- Massive Bitcoin Holdings: With 818,334 bitcoins representing 3.9% of total supply, a mere 1% sale (around 8,200 coins) could cover more than two quarters of dividend payouts, having minimal impact on its overall position.
- Market Stabilization Strategy: Saylor's mention of 'inoculating the market' suggests a calculated approach to sell small amounts of Bitcoin to stabilize prices and prevent panic, thereby ensuring future sales do not adversely affect the company's stock price.
- Risks and Opportunities: While Strategy's potential sales may influence market sentiment, the fundamental case for Bitcoin remains strong with the upcoming 2028 halving and increasing institutional adoption, encouraging investors to continue holding Bitcoin for long-term growth potential.
See More
