Strategy (MSTR) has experienced a 56.9% decline in value, trading around $138, despite being the largest U.S. equity issuer of bitcoin. The company's BTC Yield for FY2025 is 22.8%, below its target of 30%. It raised $25.3 billion in capital, increasing its share count by 52.6% in 2025. Reddit sentiment is bearish, with concerns about unlimited dilution capacity and rising preferred obligations. The firm faces challenges as bitcoin prices have fallen, impacting its financial performance.
"Strategy's FY2025 BTC Yield came in at 22.8%, meaning each share represents more bitcoin than a year ago, however, the company's own target was 30%."
"The bearish case rests on three concerns: Authorized shares raised to 10.33 billion Class A shares, giving management near-unlimited capacity to dilute common holders."
"Perpetual preferred obligations rank above common equity, and the STRC preferred has grown to $3.4 billion, with its variable rate now at 11.25%, up from 9% earlier in the year."
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