Michael Saylor Buys More Bitcoin. Regular Investors Should Own Bitcoin, Not MSTR Stock.
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Strategy’s (MSTR) recent disclosure reported the addition of 24,869 BTC to its Bitcoin (BTCUSD) holdings, bought at an average price of $80,985. The price of Bitcoin has gone down since last Friday, although the short-term swings are hardly a matter of concern for Executive Chairman Michael Saylor. Strategy now sits on 843,738 BTC bought at an average price of $75,700.
The recent purchase was funded by the sale of Strategy 9.0% Series A Perpetual Stretch Preference Stock (STRC), which helped the company raise $1.95 billion. Strategy raised another $83.7 million by selling 430,344 class A shares.
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As the price of Bitcoin finally shows some signs of recovery from its January 2026 dip, investors are left to wonder whether they should continue to buy Strategy stock — or, like Michael Saylor, simply own Bitcoin themselves? The bet with Strategy has always been that investors can gain more by holding the company’s stock, which is essentially a leveraged closed-end fund with a single asset. This has looked like an attractive bull thesis in a bull market, but there are too many unanswered questions for investors as soon as they start contemplating MSTR stock as a long-term holding.
Almost everything built into Strategy’s strategy is a drag on long-term performance. The 10% yield on its preferred stock looks attractive, but this depends on how much respect the market gives MSTR. If Wall Street goes bearish on the company, then investors will have to absorb the drag caused by the preferred dividends, as well as the convertible debt due 2032. There is also the continuous risk of equity dilution.
As investors take on all these risks, they need the company’s financing carousel to keep moving forward. Michael Saylor has been criticized in the past for his financing-driven accumulation model. Saylor has brushed aside financing risks in the past by saying the company will refinance the debt. He is adamant that the firm will keep buying BTC every quarter, forever. But as the company’s size grows, the risks get bigger as well. There doesn’t seem to be any meaningful alpha in holding the stock rather than Bitcoin. For this reason, investors may want to step away from the stock and avoid taking on the added risks that come with a MSTR investment.
About Strategy Stock
Strategy operates as a Bitcoin treasury company providing investors with diversified exposure and business intelligence solutions across the United States and international markets. The company also develops AI-powered enterprise analytics software. Its product portfolio includes Strategy Mosaic and Strategy One. Founded in 1989, it rebranded from MicroStrategy to Strategy in 2025.
Over the past year, MSTR stock is down 60% while Bitcoin has lost only 28%. This is leverage in action, and those who simply held Bitcoin have fared better. One could argue that, once the stock skyrockets for any reason, the returns would be many times greater than holding BTC. However, as existing shareholders have found out, the downside risk isn’t pretty and unless you have a way to hedge against it — and MSTR doesn’t look as attractive an investment as it has in the past.
Strategy posted its first-quarter fiscal 2026 earnings on May 5, missing both revenue and earnings estimates. Revenue for the quarter totaled $124.3 million, up almost 12% year-over-year (YOY), though it came in below market expectations. Strategy also reported a GAAP loss per share of $38.25, missing consensus estimates significantly.
At the end of the quarter, the company held 818,334 BTC, representing year-to-date (YTD) growth of 22%. Strategy also achieved a BTC yield of 9.4%. In addition, the company raised $11.68 billion YTD to support its Bitcoin-focused business strategy and operations.
What Do Analysts Say About Strategy Stock?
Following the Q1 earnings report, TD Cowen analyst Lance Vitanza raised the price target on MSTR stock from $385 to $395 while maintaining a “Buy” rating. On the same day, May 7, Canaccord Genuity increased its price target from $185 to $224 and kept a “Buy” rating.
Strategy is currently covered by 18 Wall Street analysts and carries a consensus “Strong Buy” rating. The mean price target of $370.56 implies 123% potential upside from current levels. Additionally, the highest price target of $645 suggests impressive potential upside of 289% from here.
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On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
