We came across a bullish thesis on Strategy Inc on Stock Invader’s Substack. In this article, we will summarize the bulls’ thesis on MSTR. Strategy Inc’s share was trading at $129.50 as of February 27th.
MicroStrategy (MSTR) is positioned as a leveraged proxy for Bitcoin ownership, built around an aggressive strategy of accumulating BTC through capital markets activity, particularly convertible debt issuance and structured financial products. Despite criticism labeling the model as a “Ponzi,” the core mechanics mirror traditional banking behavior, where leverage and credit issuance are used to acquire assets expected to appreciate faster than funding costs.
The company has accumulated nearly 700,000 BTC, reinforcing its identity as a “digital gold vault,” and its strategy remains unchanged despite recent stock volatility and broader crypto market weakness following the October liquidation event. While annual accumulation slowed slightly compared to the prior year, the thesis argues that Bitcoin supply dynamics are tightening due to increasing demand from institutional and retail buyers, strengthening the long-term outlook.
The introduction of multiple preferred securities, including high-yield instruments designed to raise capital for additional Bitcoin purchases, initially created skepticism but has proven more successful than expected, effectively turning the firm into a “credit factory” capable of raising billions during market downturns. As valuation premiums have compressed closer to net asset value, the remaining justification for a premium lies in the company’s ability to grow Bitcoin per share over time, provide institutional access without custody complexity, and maintain financing flexibility.
A major future catalyst is potential U.S. regulatory clarity that could formally classify Bitcoin as a digital commodity, removing legal uncertainty and potentially triggering broader adoption. With a substantial cash buffer and decades of dividend coverage implied by its holdings, downside risks appear manageable relative to upside if Bitcoin rallies. Overall, the company represents a high-conviction, high-beta vehicle for crypto exposure, with significant asymmetric potential tied directly to Bitcoin’s trajectory.
Previously, we covered a bearish thesis on Strategy Incorporated (MSTR) by Charly AI in May 2025, which highlighted the company’s leveraged Bitcoin exposure, deteriorating software fundamentals, rising debt, and fragile liquidity. MSTR’s stock price has depreciated by approximately 64.91% since our coverage. Stock Invader shares a contrarian view but emphasizes on its BTC accumulation strategy, financing engine, and regulatory catalysts as key upside drivers.
Strategy Inc is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held MSTR at the end of the third quarter which was 45 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 doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
