Latest news with #StrategyIncorporated
Yahoo
3 days ago
- Business
- Yahoo
Strategy (MSTR) Acquires $1B Bitcoin on Iran-Israel Conflict
Strategy Incorporated (NASDAQ:MSTR) is one of the 13 best software stocks to buy now. On June 16, the company confirmed the addition of $1 billion worth of Bitcoin into its portfolio. The company acquired 10,100 bitcoin during the week ending June 15, as the Israel-Iran conflict continues to pressure the markets. The purchase came on Bitcoin dropping from $110,000 to a low of $103,639 on June 12. Strategy leveraged the pullback to purchase the flagship cryptocurrency as Israel continues to strike Iranian nuclear facilities, sending shockwaves in the equity markets. The purchase also came as Strategy's third bitcoin-backed preferred stock started trading on the NASDAQ on June 11. Following the purchase, Strategy's total holding now stands at 592,100 BTC, acquired for about $41.8 billion at an average price of $70.666 per coin. Strategy Incorporated (NASDAQ:MSTR) provides cloud-native, AI-powered enterprise analytics software. It is also the world's first and largest Bitcoin Treasury Company, holding Bitcoin as its primary treasury reserve asset. The company leverages its software expertise and Bitcoin strategy to explore innovation in business intelligence and applications. While we acknowledge the potential of MSTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Healthcare Stocks to Buy Now and 10 Stocks Analysts Are Upgrading Today. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Jim Cramer Notes Strategy Incorporated 'Fascinates' Young Investors
Strategy Incorporated (NASDAQ:MSTR) is one of the 18 stocks Jim Cramer recently shared insights on. While discussing it, Cramer said that a lot of companies wish they had followed the company's path, as he said: 'They love Mister, that's what we used to call it, MSTR, now, MicroStrategy, now Strategy. It fascinates this cohort because it's a vehicle that buys crypto endlessly, often with borrowed money. Now, a lot of people wish they were MicroStrategy doing the same thing.' A software engineer wearing a headset, collaborating with a remote team on a project. Strategy (NASDAQ:MSTR) delivers AI-driven enterprise analytics software that enables users to access and interpret data through tools like Strategy One, HyperIntelligence, and Enterprise Semantic Graph. The company also provides consulting, support, and education services and maintains involvement in Bitcoin development. During an episode of Mad Money aired in April, when a caller asked about the company, Cramer commented: 'Oh… No, no. Look, we like Bitcoin. We actually buy Bitcoin. That's what we do. We want Bitcoin. We buy Bitcoin.' While we acknowledge the potential of MSTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-06-2025
- Business
- Yahoo
GameStop Stock Selloff Explained - Buy Chance or Value Trap?
Video game retailer GameStop Corp. GME shares had unpredictable price swings in 2021 due to a short squeeze, followed by a steady decline. GameStop's shares recently plunged due to lower quarterly revenues and investor dissatisfaction with the company's new capital raise policy. Despite this, the company cut costs and improved profitability. Does GME stock present a good buying opportunity or is it a value trap? GameStop's latest fundraising initiative led to a drop of over 20% in its share price on Thursday. The video game retailer was planning to raise $1.75 billion in debt financing from investors, its second such move in recent times. GameStop raised funds for general corporate needs, with investments linked to their Investment Policy. The funds were likely used to buy Bitcoins (BTC), which is consistent with GameStop's policy update in March. GameStop recently raised funds to purchase 4,710 Bitcoin, valued at more than $500 million. This shift from selling video games to investing in Bitcoin was aimed at enhancing the company's value and increasing liquidity to meet financial needs. However, GameStop's recent decision to acquire more Bitcoin was not well-received by investors. This is because Bitcoin is a volatile asset; it performs exceptionally well when it continues to rise, but when it drops, it can pose significant risks. GameStop is emulating Strategy Incorporated MSTR, previously known as MicroStrategy, which has acquired nearly 530,000 Bitcoins worth more than $45 billion since 2020. Strategy's shares surged over 2,500% in the last five years, benefiting from Bitcoin's bullish trend, particularly post the November Presidential election. GameStop's investment in Bitcoin could be beneficial, but its impact on revenue growth remains uncertain. In the first quarter of 2025, GameStop's revenues decreased by 17% compared to the previous year. According to the latest SEC filing, GameStop's sales fell by 28% to $3.8 billion in 2024 from $5.3 billion in 2023. The company's revenues decreased due to shifting customer interest from physical to digital video games. GameStop, though once a meme stock craze of the early 2020s, now lacks revenue growth while facing business challenges. Without new revenue-boosting strategies in place, it's sensible to avoid high-risk investments in GameStop, even though shares are trading at a discount. Generally, a value trap occurs when a cheaply priced stock has problems like falling earnings and weak management, but this doesn't apply to GameStop. GameStop faced more troubles during the pandemic as people stayed at home and avoided stores. However, GameStop's management made strategic moves to cut costs and increase profitability by closing stores in various countries like Switzerland, Austria, Ireland, Italy, and the United States. They are now planning to do the same in Canada and France this year. GameStop posted almost $45 million in profits in the first quarter of 2025, a substantial year-over-year improvement, and has a 29.7% debt-to-equity ratio, lower than the Gaming industry's average of 186.4%, indicating financial stability. This reliance on shareholders' equity over borrowed capital could keep stakeholders interested for potential gains. Image Source: Zacks Investment Research For now, GameStop has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GameStop Corp. (GME) : Free Stock Analysis Report MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Upturn
13-06-2025
- Business
- Business Upturn
Strategy Incorporated Class Action: Levi & Korsinsky Reminds Strategy Incorporated Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of July 15, 2025
NEW YORK, June 13, 2025 (GLOBE NEWSWIRE) — Levi & Korsinsky, LLP notifies investors in Strategy Incorporated ('Strategy Incorporated' or the 'Company') (NASDAQ: MSTR) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Strategy Incorporated investors who were adversely affected by alleged securities fraud between April 30, 2024 and April 4, 2025. Follow the link below to get more information and be contacted by a member of our team: Strategy Incorporated Lawsuit Submission Form MSTR investors may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500. CASE DETAILS: The filed complaint alleges that defendants made false statements and/or concealed that: (i) the anticipated profitability of the Company's bitcoin-focused investment strategy and treasury operations was overstated; (ii) the various risks associated with bitcoin's volatility and the magnitude of losses Strategy could recognize on the value of its digital assets following its adoption of ASU 2023-08 were understated; and (iii) as a result, defendants' public statements were materially false and misleading at all relevant times. WHAT'S NEXT? If you suffered a loss in Strategy Incorporated during the relevant time frame, you have until July 15, 2025 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff. NO COST TO YOU: If you are a class member, you may be entitled to compensation without payment of any out-of-pocket costs or fees. There is no cost or obligation to participate. WHY LEVI & KORSINSKY: Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. CONTACT:Levi & Korsinsky, LLP Joseph E. Levi, Korsinsky, Esq.33 Whitehall Street, 17th FloorNew York, NY 10004 [email protected] Tel: (212) 363-7500Fax: (212) 363-7171
Yahoo
09-06-2025
- Business
- Yahoo
Strategy Incorporated (MSTR): A Bull Case Theory
We came across a bullish thesis on Strategy Incorporated (MSTR) on by Chris Millas. In this article, we will summarize the bulls' thesis on MSTR. Strategy Incorporated (MSTR)'s share was trading at $378.10 as of 4th June. 10 Companies Buying Bitcoin Like There's No Tomorrow Strategy₿, formerly MicroStrategy, has redefined itself as the leading corporate Bitcoin treasury, building a business model engineered entirely around acquiring and holding Bitcoin. Michael Saylor's vision is simple: create financial instruments that attract all investor types, use the capital raised to buy Bitcoin, and repeat the cycle to maximize Bitcoin Per Share and Bitcoin Yield. Strategy's toolkit includes a suite of capital levers—convertible bonds, preferred equities like $STRK, $STRF, and $STRD, and at-the-market offerings—each structured to capture fiat and convert it into Bitcoin without overburdening the balance sheet. The firm's preference for preferred equity over traditional debt stems from its flexibility, as these instruments carry no maturity, no repayment obligations, and allow for paused dividends in challenging markets, all while preserving balance sheet strength and creditworthiness. Volatility in Strategy's share price is not a bug but a feature. Upside volatility accelerates bond conversions to equity, while downside volatility resets the base, making future instruments more appealing. Convertible arbitrage traders also amplify this effect, dynamically shorting or covering Strategy's stock based on delta shifts, profiting from volatility while adding liquidity. Strategy may be deliberate in issuing convertibles due to timing lockouts and a need for favorable market conditions—high volatility and low leverage—so they can secure low coupons and favorable terms. Despite the speculative nature of Bitcoin and its price-linked instruments, Strategy's debt is not backed by Bitcoin collateral, shielding it from margin calls. With unencumbered Bitcoin reserves, scalable capital access, and investor products designed for every risk appetite, Strategy offers a way to potentially outperform Bitcoin itself as it continues advancing toward a Bitcoin Standard. Previously, we covered a bearish thesis on Strategy Incorporated (MSTR) by Charly AI on Substack, which depicts MSTR as an overleveraged Bitcoin proxy with declining core software and fragile finances. This thesis has partially played out as the stock price has depreciated by -0.9% however, it might be too soon to speculate. The bullish view by Chris Millas frames it as an innovative Bitcoin-focused entity using flexible capital tools to amplify upside while managing risk. Both agree it's a Bitcoin bet—one calls it reckless, the other strategic. Strategy Incorporated (MSTR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held MSTR at the end of the first quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of MSTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey
