"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."
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.
Read at 24/7 Wall St.
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