Strategy Inc ’s Boldest Bitcoin Move Yet—Can Perpetual Strife Fuel Infinite Leverage?

$50.00 — or $120.00 / year

Strategy Inc. closed Q4 with mixed results, as software revenue declined 3% YoY to $121M, missing estimates by $2.03M, while cloud subscription services surged 48% YoY to $28M. Adjusted EPS of -$3.20 and GAAP EPS of -$3.03 widely missed expectations, reflecting increased capital markets activity tied to its Bitcoin strategy. The company’s most aggressive BTC accumulation quarter saw holdings grow to 499,096 BTC (~$46.1B market value), with its shift to FASB’s fair value accounting eliminating impairment charges, providing a one-time $12.75B retained earnings uplift. Strategy raised $18.8B in net equity proceeds and $6.2B in convertible debt, with its introduction of perpetual preferred stock (“Strife”) signaling a shift in capital structure. While the fixed 10% dividend component appeals to yield-focused investors, subordinated status and rigid payouts introduce potential liquidity risks. With Bitcoin price upside, institutional adoption, and macroeconomic conditions serving as tailwinds, execution on remaining capital raises and regulatory scrutiny remain key watchpoints. Does Strategy’s evolving capital structure unlock further Bitcoin upside, or does its rising cost base and financial engineering introduce new structural risks?

Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures

Related products

Scroll to Top