I think you are/were is MSTY.
I think the rationale behind it is gone. Institutions were in MSTR because they could not invest in Bitcoin at the time. Now there are more companies buying Bitcoin so MSTR is not the only game in town.
I believe funds can now buy and hold cryptocurrencies.
As a result there is no reason to pay a premium for MSTR, since MSTR was trading at a premium over it nav of Bitcoin holdings.
>>>>>>>>>>
Time to Take Profits on Strategy Stock? 3 Reasons You ShouldWritten by Gabriel Osorio-Mazilli. Published 9/1/2025.
Key Points- Strategy stock is showing investors why its foundations are set on weak fundamentals, and giving them three reasons to take profits now.
- Market sentiment toward risk is changing fast, and that directly affects the price of Bitcoin.
- The company's CFO is selling large amounts of stock for a reason; investors may not want to stick around to find out why.
When the table heats up—whether at blackjack, poker or in the market—it’s often wise to call it a night and lock in profits. If you feel compelled to check a stock’s price constantly, your emotions have probably overtaken your original thesis, and your position may have grown too large. That’s exactly the precarious situation many investors in Strategy Inc. (NASDAQ: MSTR) face today.
And it’s understandable: the stock is down 13.4% in the past month alone, while Bitcoin—the company’s sole asset—has fallen just 6.2%. To the uninitiated, this implies a beta near 2.0: when Bitcoin moves, Strategy often reacts more than twice as much, especially when a hint of panic sets in.
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Given this volatility, here are three fundamental reasons why investors may want to take profits on Strategy stock—even if the allure of new all-time highs remains compelling. The cost of holding through a major downturn outweighs the potential upside, and that’s simply poor risk management.
A Flawed FoundationStrategy’s model is straightforward: when Bitcoin rallies, the stock soars; when Bitcoin corrects, the share price plunges. Unfortunately, recent price action has shown the downside can be brutal.
Originally, Strategy generated most of its revenue from software development and services, which were never material. Chief Executive Officer Michael Saylor then adopted a bold strategy: issue stock to raise capital—since the company wasn’t profitable—and use the proceeds to buy Bitcoin. Each share issuance dilutes existing holders and exerts downward pressure on the stock.
By effectively leveraging new share sales to acquire Bitcoin—a highly volatile asset—Strategy operates much like a leveraged crypto fund. The margin here isn’t paid in cash but in amplified losses when prices fall.
Rapidly Shifting MarketsDuring a broad risk-on environment, Strategy’s stock is hard to argue with: fundamentals take a back seat when momentum and hype are in overdrive. This dynamic fueled the recent tech rally, with growth names outperforming the rest of the market.
That fervor has bled into other risk assets, including cryptocurrencies. However, sentiment is shifting. Investors are questioning whether valuations for high-flying names—like those in the Magnificent Seven—are too stretched and are hunting for better value elsewhere.
Bitcoin is part of this rotation, and its drop over the past month illustrates how quickly risk assets can cool off. Strategy stock, with its built-in leverage to Bitcoin, has suffered doubly. When the table cools, it may be time to walk away.
Insider Selling Spells TroubleIn early August 2025, CFO Andrew Kang sold more than $10 million of Strategy shares, one chunk of the $59 million insiders have unloaded in the latest quarter. While there are smaller insider buys, a significant sale can erode confidence across the investor base.
This skepticism shows up in valuation metrics. Strategy trades at a price-to-book (P/B) ratio of just 2.1x, versus a 9.3x average for the computer sector—meaning Strategy shares are deeply discounted. Yet cheap doesn’t always mean attractive.
Markets typically punish stocks they lack faith in. With its only meaningful assets being cash raised through dilution and Bitcoin purchased near all-time highs, investors aren’t lining up to bid its book value higher.
Ultimately, the combination of a leveraged business model, shifting market dynamics, and insider selling suggests it may be time to lock in gains on Strategy stock rather than chase uncertain highs. |
