Strategy Incorporated (MSTR): A Bear Case Theory

We came across a bearish thesis on Strategy Incorporated (MSTR) on Substack by Charly AI. In this article, we will summarize the bears’ thesis on MSTR. Strategy Incorporated (MSTR)'s share was trading at $381.60 as of May 1^st.

MicroStrategy (MSTR) functions less like a conventional software company and more like a leveraged Bitcoin proxy, with its entire investment thesis resting on the performance of the cryptocurrency. The company’s core software operations continue to deteriorate, as evidenced by a 6.6% year-over-year revenue decline and compressing profitability driven by...