Strategy Inc MSTR

The business

Strategy has two identities. The visible one is an enterprise analytics software business doing about $477M of annual revenue at roughly breakeven operating income, sold to corporate technology buyers, paid for through licences and support, and flat for a decade. The real one is a leveraged bitcoin holding vehicle: it issues common stock, convertible debt, and a growing stack of perpetual preferred to capital markets investors, then converts the proceeds into coins and holds them.

The economic engine is the issuance spread, not the software. When securities are sold above the value of the bitcoin they buy, bitcoin per share rises and existing holders get richer without bitcoin moving at all. That ran forward for years at a two to three times premium and funded roughly 851,000 coins. At 0.84x it runs backward, because every share sold below net asset value hands current holders less bitcoin per share rather than more.