MicroStrategy Doubles Down on Bitcoin Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Bitcoin Holdings Status: MicroStrategy currently holds 712,647 BTC at an average purchase price of $76,037, with Bitcoin trading around $78,000, resulting in unrealized gains narrowing to less than 3%.
- Dividend Increase Strategy: The company raised the dividend on its Series A Perpetual Stretch Preferred Stock (STRC) by 25 basis points to 11.25%, aiming to attract new capital for future Bitcoin purchases, with this yield significantly exceeding typical corporate bonds, reflecting the company's capital hunger.
- Funding Source Analysis: STRC sales have funded over 27,000 BTC since its November launch, becoming the primary engine for the firm's capital raises, highlighting its importance in the Bitcoin investment strategy.
- Market Response and Risks: Despite facing cash flow pressures from high dividend costs, MicroStrategy plans to continue increasing its Bitcoin holdings, indicating that its strategy in response to market volatility is to invest more, demonstrating confidence in Bitcoin's long-term value.
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Analyst Views on MSTR
Wall Street analysts forecast MSTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSTR is 453.17 USD with a low forecast of 229.00 USD and a high forecast of 705.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 143.190
Low
229.00
Averages
453.17
High
705.00
Current: 143.190
Low
229.00
Averages
453.17
High
705.00
About MSTR
Strategy Inc., formerly MicroStrategy Incorporated, 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. The Company’s 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, telecommunications, and the public sector. 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. The Strategy Mosaic offers data clarity and connection by eliminating trade-offs between flexibility, control, and speed.
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.
MicroStrategy Doubles Down on Bitcoin Investment
- Bitcoin Holdings Status: MicroStrategy currently holds 712,647 BTC at an average purchase price of $76,037, with Bitcoin trading around $78,000, resulting in unrealized gains narrowing to less than 3%.
- Dividend Increase Strategy: The company raised the dividend on its Series A Perpetual Stretch Preferred Stock (STRC) by 25 basis points to 11.25%, aiming to attract new capital for future Bitcoin purchases, with this yield significantly exceeding typical corporate bonds, reflecting the company's capital hunger.
- Funding Source Analysis: STRC sales have funded over 27,000 BTC since its November launch, becoming the primary engine for the firm's capital raises, highlighting its importance in the Bitcoin investment strategy.
- Market Response and Risks: Despite facing cash flow pressures from high dividend costs, MicroStrategy plans to continue increasing its Bitcoin holdings, indicating that its strategy in response to market volatility is to invest more, demonstrating confidence in Bitcoin's long-term value.
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YieldMax MSTR ETF: High Risk, High Reward
- Investment Strategy Overview: The YieldMax MSTR Option Income Strategy ETF utilizes a complex options strategy to provide investors with indirect exposure to Strategy (MSTR) stock, allowing participation in the Bitcoin market without directly purchasing Bitcoin.
- Dividend Yield Warning: The ETF's annualized dividend yield reached an astonishing 75% based on the weekly payment on January 21, 2026, a figure that would raise red flags for most dividend investors, as high yields often come with high risks.
- Investment Return Performance: Over the past year, the ETF reported a total return of negative 42%, and even with reinvested dividends, investors would have seen their actual losses approach 80%, indicating that the ETF's performance significantly underperforms expectations and may not suit long-term investors.
- Risk Advisory: The YieldMax MSTR ETF's dividends can fluctuate dramatically from payment to payment, and its distributions include ordinary dividends, capital gains, and return of investor capital, which may lead to a decline in the fund's NAV and trading price over time, exposing investors to substantial losses.
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