20 Large-Cap Stocks Insiders and Short Sellers Are Dumping Like Crazy

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4. Strategy Incorporated (NASDAQ:MSTR)

Short Float: 11.67%

Insider Transaction: -1.14%

Strategy Incorporated (NASDAQ:MSTR) is an enterprise software company specializing in business intelligence (BI), cloud analytics, and, increasingly, Bitcoin acquisition. The company was formerly called Microstrategy Incorporated. Operating from Virginia, it is known for its integrated analytics platform. Strategy Incorporated (NASDAQ:MSTR) provides scalable data visualization and mobile intelligence tools and competes against competitors like Tableau and Qlik for market share. The company has been garnering attention for its aggressive cryptocurrency investment strategy, with significant Bitcoin holdings influencing its financial profile.

In its Q4 results, Strategy Incorporated (NASDAQ:MSTR) reported strong growth in its cloud platform, with subscription billings and subscription services revenue experiencing 50% and 48% year-over-year growth, respectively. However, the total software revenue has declined by 3% year-over-year. The report also points to a $1 billion digital asset impairment charge reflecting the risks and volatility associated with Bitcoin. Strategy Incorporated’s (NASDAQ:MSTR) growth strategy is exposed to risks from unrealized capital gains tax on crypto assets, giving the company a negative outlook.

With an 11.67% short float, Strategy Incorporated (NASDAQ:MSTR) is under heavy scrutiny, particularly owing to its substantial Bitcoin exposure. On the other hand, insider transactions remain low but negative at -1.14%. But despite the marginal insider selling, the market’s bearish bets raise concerns about the company’s crypto-leveraged balance sheet.

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