Thursday, July 24, 2025

πŸ‡ΊπŸ‡Έ Daily US Stock Market Update for Thursday, July 24, 2025 πŸ‡ΊπŸ‡Έ

"It's another day in the market, and it feels like we're constantly on a roller coaster - some days we're soaring with the eagles, other days it's more of a gentle descent!

1️⃣ What Happened Today

■ Mr Market’s Mood: Exuberance continues in some pockets –

S&P 500 and Nasdaq notched record closes but barely, while the Dow took a breather, dragged by tech

Investors hit pause after Alphabet’s AI-fueled earnings pop, but Tesla and IBM’s stumbles and Trump’s Fed visit kept folks on edge.

Trump and Powell clashed on camera ovee FED renovation costs… so its heating up.

Bitcoin held steady ( slightly up albeit), shrugging off the noise, while gold dipped as risk appetite flickered.

■ πŸ’΅ Macro View:

The Fed’s in the spotlight with Trump’s rare visit to Powell, the first by a president in nearly 20 years, fueling speculation of rate cut pressure. 10-year Treasury yields ticked to ~4.40%, reflecting tariff-driven inflation worries.

Geopolitical buzz around U.S.-EU trade talks (15% tariff deal in sight?) added hope but also uncertainty.

■ Sector Spotlight / Rotation:

🟒Winners: Technology led the pack, powered by Alphabet’s AI optimism. πŸ’»

πŸ”΄ Losers: Consumer Discretionary lagged.

■ πŸ”₯ Top Large Cap Stock Up: Alphabet $GOOGL πŸ“ˆ still climbing after a strong Q2 earnings beat, with AI investments paying off, boosting investor confidence in tech’s ROI.

■ Large Cap Stock Down: Tesla $TSLA πŸ“‰ slid as auto revenue fell for the second straight quarter, raising concerns about demand and Musk’s focus amid Trump tensions.

■ Notable Earnings: Alphabet beat expectations, lifting shares; Tesla missed, dragging stock down; IBM fell after software revenue disappointed.

2️⃣ So What / Why It Matters?

■ How It Could Impact: Alphabet’s win signals AI’s growth potential, but Tesla and IBM’s misses highlight risks in overhyping tech. Trump’s Fed visit and tariff talks could spark volatility if rate cuts or trade deals don’t materialize. Rising yields suggest inflation fears, which might tighten wallets and hit growth stocks. Strong jobless claims point to economic strength, but markets are jittery about policy shifts. Investors are balancing greed with caution, eyeing Fed moves and trade outcomes.

3️⃣ Now What / What’s Next?

■ πŸ“Œ Action:

□ Stay selective: Focus on quality stocks with strong fundamentals but watch for overvaluation in techπŸ’‘

□ Monitor Fed signals: Trump’s visit could hint at rate cut pressure—keep an eye on Powell’s next moves. 🏦

□ Assess Diversifying: Balancing tech exposure with defensive sectors like utilities to hedge tariff or inflation risks. πŸ›‘️

■ πŸ“… Upcoming Earnings (July 25, 2025)

□ HCA Healthcare (HCA): Likely to see solid hospital demand but cost pressures.

■ Upcoming Major Events This Week:

□ July 30 FOMC meeting: Investors await clues on rate cuts, with odds for September at ~60%.

□ Ongoing U.S.-EU trade talks: Potential deal could ease tariff fears or spark new ones by Aug 1.

Follow for daily US stock market updates here or on Substack for deep dives! Free for the first 500 users: https://substack.com/@stockcrock?r=50tzb9&utm_medium=ios&utm_source=profile πŸ“Š Or catch me on Reddit/Twitter @ValueCroc 🐊

Disclaimer: Not financial advice. Reasonable effort made to ensure accuracy, but errors can happen—double-check all key info before acting. πŸ™


Spot Trading Routines in a High-Volatility Meme Market, What’s Working for You?

With meme coins dominating July’s volume and Bitcoin stabilizing above $120K, I’ve been refining my short-term spot trading strategy, mostly on platforms that offer dynamic token listings and liquidity.

Bitget’s current campaign (they’re running a reward system for daily spot trades) turned out to be more useful than I expected. It encouraged me to track token flows and test setups consistently over multiple days. What really caught my eye was how early they listed stuff like $GOAT and $PNUT, the price moves were wild, but some were predictable based on liquidity shifts and holder distribution.

I’m not advocating for jumping into exchange events for the sake of it, but it’s been a decent sandbox for data-driven trading during this meme frenzy.

Would love to hear how others are adapting spot strategies lately. Are you focused on fundamentals, rotations, sentiment, or something else?


What is a Digital Asset? The 2025 Comprehensive Guide

[Check what is a digital asset video on youtube.]

What is a Digital Asset? The 2025 Comprehensive Guide

Digital assets are rapidly reshaping the landscape of finance, technology, and art. Understanding what constitutes a digital asset, its various forms, and its evolving legal and financial implications is crucial for anyone navigating the modern digital world. This guide provides a comprehensive overview of digital assets, offering profound understanding and practical information for 2025 and beyond.

Defining the Digital Asset

A Digital asset is broadly defined as anything that exists in a binary format, comes with the right to use and is found online or on a digital device. This definition, while encompassing, requires further unpacking to fully grasp the nature of these intangible assets.They are not merely digital representations of physical objects; rather, they possess intrinsic value and utility within the digital realm. Their existence is entirely dependent on digital technology and are frequently enough tied to specific platforms or networks.

Generally, they are:

Intangible: They lack physical form, existing solely in the digital domain. Digitally Stored: They are stored electronically and require digital devices for access and use. Transferable: Ownership can be transferred from one party to another, frequently enough through cryptographic means. valuable: They possess economic or intrinsic value, driving their demand and usage.

Types of Digital Assets

The spectrum of digital assets is vast and ever-expanding, encompassing a range of different forms, each with unique characteristics and applications. A thorough understanding of these different types is essential for identifying opportunities and navigating the complexities of this burgeoning field.

Cryptocurrencies: Cryptocurrencies are decentralized digital currencies that rely on cryptography for security.Bitcoin,Ethereum,and Litecoin are prime examples. They operate independently of central banks and are designed to facilitate peer-to-peer transactions. Their value is derived from factors like scarcity, adoption, and network effects. They are often used for investments, speculative trading, or as a medium of exchange.

Tokens: Tokens represent a unit of value or utility within a specific blockchain or digital ecosystem. While cryptocurrencies are designed to function as currencies, tokens serve various purposes, such as granting access to services, representing ownership in a digital asset, or serving as rewards within a platform. Examples include utility tokens like Chainlink (LINK), which powers decentralized oracle networks, and security tokens, which represent ownership in a company or asset.

Non-Fungible Tokens (NFTs): Nfts are unique digital assets that represent ownership of a specific item or piece of content. Each NFT is distinct and cannot be replicated, making them ideal for representing ownership of digital art, collectibles, virtual real estate, and other unique items. The rise of NFTs has revolutionized the art and collectibles markets, providing creators with new ways to monetize their work and connect with collectors, opening new avenues for digital ownership and provenance.

Stablecoins: Stablecoins are cryptocurrencies designed to maintain a stable value relative to a specific asset, such as the U.S. dollar or gold. They aim to provide the benefits of cryptocurrencies, such as fast and cheap transactions, while minimizing price volatility.Examples include Tether (USDT) and USD Coin (USDC), which are pegged to the U.S. dollar. They act as a bridge between traditional finance and the world of cryptocurrencies, facilitating transactions and investment in a more stable manner.

Central Bank Digital Currencies (CBDCs): Cbdcs are digital currencies issued and backed by a central bank. They represent a digital form of a country's fiat currency and aim to streamline payments, reduce transaction costs, and improve financial inclusion. Many countries are exploring the potential of CBDCs,and their adoption could significantly impact the future of money and payments systems,transforming the role of central banks in the digital age.

Digital Securities: digital securities are traditional securities, such as stocks and bonds, that are tokenized and traded on blockchain networks. Tokenization allows for fractional ownership, increased liquidity, and faster settlement times. It brings the benefits of blockchain technology to traditional financial markets, paving the way for a more efficient and accessible investment landscape.

Virtual Land: Virtual land exists within metaverse platforms and represents ownership of a piece of digital real estate. Users can buy, sell, and develop virtual land, creating experiences, building structures, and hosting events, expanding the possibilities for digital ownership and interaction within immersive virtual worlds.

Digital Art: Digital art encompasses a wide range of artistic creations that exist in digital form, including images, videos, and interactive installations. The advent of NFTs has provided a means for artists to authenticate and monetize their digital artworks, creating new opportunities for creators and collectors.

The Significance and Applications of Digital Assets

Digital assets offer a wide range of potential benefits and applications across various industries, from finance and art to supply chain management and healthcare. Their ability to streamline processes, reduce costs, and enhance security is driving their adoption across a growing number of sectors.

Financial Innovation: Digital assets are revolutionizing the financial industry by enabling new financial products and services, such as decentralized lending platforms, tokenized securities, and cross-border payments. These innovations have the potential to increase efficiency, reduce costs, and improve access to financial services for individuals and businesses around the world.

enhanced Security: Blockchain technology, which underlies many digital assets, provides enhanced security and transparency.Cryptographic techniques ensure the integrity of transactions and protect against fraud and manipulation. This makes digital assets attractive for applications that require high levels of security, such as supply chain management and identity verification.

Increased Efficiency: Digital assets can streamline processes and reduce transaction costs by eliminating intermediaries and automating tasks. Smart contracts, for example, can automatically execute agreements when certain conditions are met, reducing the need for manual intervention and paperwork.

New Revenue Streams: Digital assets are creating new revenue streams for creators and businesses. NFTs, for example, allow artists to sell their digital artworks directly to collectors, while tokenized securities enable companies to raise capital more efficiently. Digital assets are unlocking new opportunities for monetization and value creation.

Decentralization and Transparency: Many digital assets are designed to be decentralized, meaning that they are not controlled by a single entity. This decentralization can increase resilience and reduce the risk of censorship or manipulation. Blockchain technology also provides transparency, allowing anyone to verify transactions and track the ownership of assets.

Supply Chain Management: Digital assets can be used to track and trace goods throughout the supply chain, increasing transparency and efficiency. By recording information about the origin, location, and condition of goods on a blockchain, businesses can improve visibility, reduce fraud, and ensure the authenticity of products. Healthcare: Digital assets can be used to securely store and share medical records, improving patient privacy and data interoperability. Blockchain technology can also be used to track the provenance of pharmaceuticals and prevent the distribution of counterfeit drugs.

Identity Management: Digital assets can be used to create decentralized identity solutions, allowing individuals to control their own personal data and securely verify their identity online. This can reduce the risk of identity theft and fraud, while also streamlining online interactions.

challenges and Considerations

While digital assets offer significant opportunities, they also present a number of challenges and considerations that must be addressed to ensure their responsible and lasting development. Regulatory Uncertainty: The regulatory landscape for digital assets is still evolving, and there is a lack of clarity and consistency across different jurisdictions. This regulatory uncertainty can create challenges for businesses operating in the digital asset space.

security Risks: Digital assets are vulnerable to security risks, such as hacking, theft, and fraud. It is indeed vital to implement robust security measures to protect digital assets from these threats.

Volatility: The value of many digital assets can be highly volatile, making them risky investments. Investors should be aware of the risks involved and only invest what they can afford to loose.

Scalability Issues: Some blockchain networks face scalability issues, which can limit their ability to process a large number of transactions quickly and efficiently.

Environmental Concerns: the energy consumption of some blockchain networks,especially those that use proof-of-work consensus mechanisms,has raised environmental concerns. Lack of Consumer Protection: Consumer protection laws for digital assets are still developing, and investors may not have the same protections as they do with traditional financial products.

The Future of Digital Assets

The future of digital assets is radiant, with the potential to transform industries and create new economic opportunities.As technology continues to evolve and regulatory frameworks become clearer, the adoption of digital assets is highly likely to accelerate.

Mainstream Adoption: As awareness of digital assets grows and regulatory frameworks become more defined, mainstream adoption is likely to increase. Businesses and individuals will increasingly use digital assets for a variety of purposes, from payments and investments to supply chain management and identity verification.

Institutional Investment: institutional investors, such as hedge funds and pension funds, are increasingly showing interest in digital assets. This institutional investment could provide significant capital to the digital asset market and drive further growth. Integration with Traditional Finance: Digital assets are likely to become more integrated with traditional finance, as financial institutions offer new products and services that incorporate digital assets. This integration could lead to a more efficient and accessible financial system.

New Applications: New and innovative applications of digital assets are constantly being developed. These applications have the potential to transform industries and create new economic opportunities.

  • Regulatory Clarity: As regulatory frameworks for digital assets become clearer,businesses will have more certainty about how to comply with the law.This clarity will encourage innovation and investment in the digital asset space.

conclusion

Digital assets represent a fundamental shift in the way we think about value, ownership, and interaction in the digital world. While challenges remain, their promise of increased efficiency, transparency, and accessibility is undeniable. By understanding the nature of digital assets, their various forms, and their potential applications, individuals and organizations can position themselves to capitalize on the opportunities that this exciting and rapidly evolving field offers. navigating the digital asset landscape requires a blend of technical knowledge, financial acumen, and legal awareness. As we move towards 2025,a comprehensive understanding of digital assets will be essential for anyone seeking to thrive in the digital economy.

[Find more usefule what is a digital asset on google.]](https://www.google.com/search?q=what is a digital asset)


Wednesday, July 23, 2025

Why $100 XRP or higher is impossible in short term.

At $100, XRP is at about 10 TRILLION USD valuation (at 100 billion XRPs. It's more like 99.99B tho)

*I compare at the full amt of 100b because Bitcoin is almost all mined (19.99m), so that's more fair comparison.

Bitcoin is about at 2.5 Trillion at the maximum 21m. Which means at $10, XRP will be FOUR TIMES more valuable than Bitcoin!

If even you really like XRP and believe in ita future, there no way the market will value XRP FOUR TIMES more than Bitcoin in any near term future. Bitcoin is the king of the crypto until some other crypto unseats it. And that will take some huge events for XRP to do that. XRP needs real adoptions for it to close the gap w Bitcoin first.


Draftkings of Crypto πŸ€”

https://i.redd.it/fefqs6r98pef1.png

Tuesday, July 22, 2025

Forte Valbit Review 2025 - Is it Scam or Legit?

Anyone else constantly feel like they’re missing the crypto boat? πŸš€

With the rise of automated trading platforms, even people who’ve never traded a day in their life are making moves in the crypto space. One name I’ve seen pop up more and more lately is Forte Valbit. If you’re like me, you’ve probably wondered, “Is this another overhyped bot, or is it actually useful?” That curiosity led me to do a deep dive into everything Forte Valbit has to offer.

In this review, I’ll break down what makes Forte Valbit different from the dozens of other platforms out there. I’ll also touch on how it works, what it costs, and whether it’s actually worth your time (and money). Buckle up—this is everything you need to know about Forte Valbit in plain English.

πŸ‘‰ Open Your Forte Valbit Account Now

Summary

Here’s a quick overview of the key details about Forte Valbit if you’re short on time:

Feature Details
Platform Name Forte Valbit
Type Automated cryptocurrency trading platform
Minimum Deposit $250
Supported Assets Crypto, Forex, Stocks, Commodities
Mobile Compatible Yes (mobile browser access)
Customer Support 24/7 live chat & email
Availability Most countries except for restricted regions
Demo Account Yes
User-Focused Features Real-time analytics, customizable alerts, easy interface
Security Level High (SSL encryption, secure login protocols)

What is Forte Valbit?

Forte Valbit is an automated trading platform that allows users to trade cryptocurrencies, stocks, forex pairs, and commodities with minimal manual input. Think of it like a digital assistant that watches the markets for you and executes trades based on real-time data and pre-set strategies.

The platform is designed to help both beginners and experienced traders by offering tools like real-time market analysis, custom alerts, and a user-friendly dashboard. Whether you want to trade Bitcoin, Ethereum, or traditional assets like gold or oil, Forte Valbit gives you that flexibility.

What really stands out is how it simplifies the trading process. You don’t need to be glued to your screen all day or understand every chart pattern. Forte Valbit takes care of most of the heavy lifting.

Who Created Forte Valbit?

The team behind Forte Valbit stays somewhat under the radar—pretty common in the crypto space. From what I could gather, it seems to be developed by a group of seasoned fintech professionals and crypto traders who wanted to create a more intuitive and accessible trading platform.

While there's no "celebrity" founder like Elon Musk or Vitalik Buterin, the system itself shows signs of a well-thought-out backend. The layout, trading algorithms, and interface design suggest that this wasn’t a hastily thrown-together product. It’s got polish.

That said, I wish they were a little more transparent about the team behind it. A bit more openness would go a long way in building trust, especially in a space where scams are all too common.

πŸ”₯ Start Trading with Forte Valbit Today

How Does Forte Valbit Work?

At its core, Forte Valbit uses automated trading algorithms to scan the market and execute trades that fit your selected parameters. Once you fund your account and set your preferences, the platform starts analyzing trends in real-time—looking for high-probability trade setups.

Here’s a simplified breakdown of how it works:

  • You sign up and deposit your funds.
  • You choose your preferred trading settings (risk level, assets, strategy).
  • The algorithm monitors the markets 24/7.
  • Trades are executed automatically based on data signals.
  • You can monitor, pause, or adjust your strategy as needed.

It’s like having a tireless assistant who never sleeps and isn’t swayed by emotions—just pure data-driven decisions. And if you’re new to trading? There's even a demo mode to help you get comfortable.

Forte Valbit Pros and Cons

No platform is perfect, and Forte Valbit is no exception. Here’s what stood out to me:

Pros:

  • User-friendly interface—great for beginners
  • Supports multiple asset types (not just crypto)
  • Custom alerts help you stay in control
  • Mobile-friendly design for on-the-go trading
  • Real-time data analysis for quick decision making
  • Demo account for safe practice
  • No hidden fees—pretty transparent overall

Cons:

  • $250 minimum deposit might be steep for some
  • No mobile app (but fully accessible via browser)
  • Little info about the dev team
  • High volatility risk—like all trading platforms

Overall, the pros definitely outweigh the cons, especially if you’re looking for a solid intro to automated trading.

πŸ‘‰ Open Your Forte Valbit Account Now

What Devices Can be Used to Access Forte Valbit?

One of the things I like about Forte Valbit is how device-agnostic it is. You don’t need to download any clunky software or apps. It’s completely web-based, meaning you can use it on:

  • Desktops
  • Laptops
  • Tablets
  • Mobile phones (iOS and Android)

As long as you’ve got a stable internet connection and a modern browser like Chrome or Safari, you’re good to go. The responsive design also means it adapts well to smaller screens without feeling cramped.

Forte Valbit – Supported Countries

Forte Valbit is reportedly available in most countries, with the usual exceptions. If you’re in the U.S., Canada, or parts of Asia, you might run into some restrictions due to local regulations.

Here’s a rough breakdown:

Supported:

  • Most of Europe
  • Australia
  • South Africa
  • Latin America
  • UK (yes, post-Brexit too)

Possibly Restricted:

  • USA
  • Canada
  • China
  • North Korea (obviously)
  • Some Middle Eastern countries

Best to check with customer support or try to register. It’ll let you know right away if your country isn’t supported.

Forte Valbit – Top Features

Real-Time Market Analysis

This is where Forte Valbit shines. It constantly scans global markets using live price feeds and advanced algorithms. The system analyzes trends, volume spikes, and market sentiment to identify promising trade opportunities.

It’s kind of like having a Bloomberg Terminal in your pocket—but way less complicated and more affordable.

User-Friendly Interface

The dashboard is super clean. Even if you’ve never traded before, you’ll find it easy to navigate. Settings are clearly labeled, and there’s no overwhelming jargon. You can switch between live trading, demo mode, and your account settings with just a few clicks.

Mobile Accessibility

While there’s no dedicated app (yet), the platform is fully optimized for mobile browsers. Whether you're on Safari, Chrome, or Firefox, you can check trades, make deposits, and get alerts from your phone.

It’s perfect for people who don’t want to be tied to their desktop all day.

Customizable Alerts

If you're someone who likes to stay in the loop, you’ll appreciate the custom alert system. You can set alerts for specific price levels, trade outcomes, or market events. They’ll ping you via email or browser push notifications.

It’s a great way to stay informed without being glued to your screen 24/7.

Multiple Asset Trading

Forte Valbit supports more than just Bitcoin. You can trade:

  • Cryptocurrencies (BTC, ETH, XRP, etc.)
  • Forex pairs (EUR/USD, etc.)
  • Stocks (Apple, Tesla, etc.)
  • Commodities (Gold, Oil)

This makes it a good fit if you want a diversified trading experience without hopping between platforms.

Is Forte Valbit a Scam?

The short answer? No, it doesn’t seem like a scam.

I couldn’t find any major red flags like fake testimonials, sketchy promises of guaranteed profits, or misleading info. The platform is pretty transparent about its features and risks. Plus, the demo account is a nice touch—it lets you test the waters before putting any real money in.

Still, always keep in mind: no platform can eliminate market risk. Trade smart, and don’t invest what you can’t afford to lose.

What is the Minimum Deposit Required on Forte Valbit?

The minimum deposit is $250, which is pretty standard for platforms like this. It’s enough to give you some flexibility with trades but not so much that it feels like a huge commitment.

Payments can be made via:

  • Credit/debit cards
  • Bank transfer
  • E-wallets (like Skrill or Neteller)

Just make sure to use a verified payment method to avoid delays.

Forte Valbit Customer Support

The platform offers 24/7 customer support, which is a big plus. You can reach them via:

  • Live chat
  • Email
  • Contact form on the site

I tried their chat feature and got a helpful response in under 3 minutes, which honestly surprised me. No bots—just a real human with answers.

How do you start trading on Forte Valbit?

Getting started is super straightforward. Here’s how:

Step 1: Sign Up for a Free Account

Head to the official Forte Valbit website and enter your name, email, and phone number. You’ll get a verification email right away.

Step 2: Verify and Fund Your Account

Once verified, you’ll be asked to make the $250 deposit. Choose your payment method, and the funds usually show up in your account within minutes.

Step 3: Start Trading

Go to your dashboard, set your trade preferences (like risk level and assets), and let the algorithm do its thing. You can switch between demo and live mode anytime.

How to Delete a Forte Valbit Account?

If you ever want to close your account, just:

  1. Contact customer support via email or chat.
  2. Request account deletion.
  3. Withdraw any remaining funds before confirming.

They usually process requests within 24–48 hours.

πŸ”₯ Start Trading with Forte Valbit Today

The Verdict

If you’re looking for a simple, effective way to dip your toes into crypto or asset trading, Forte Valbit is a solid option. It offers a clean interface, real-time data, and the kind of automation that makes trading more accessible for newbies and less stressful for pros.

Sure, it’s not perfect—no dedicated app and limited info about the creators—but the pros far outweigh the cons. I wouldn’t call it revolutionary, but it’s definitely worth checking out.

FAQs

Is Forte Valbit a safe platform to trade on?

Yes, it uses SSL encryption and secure login protocols. Just remember, market risk is always present.

What are the fees associated with using Forte Valbit?

There are no hidden fees. The platform earns through small commissions on successful trades.

Can I use Forte Valbit on my mobile device?

Yup! No app, but the platform works smoothly in your mobile browser.

What types of assets can I trade on Forte Valbit?

You can trade crypto, forex, stocks, and commodities—more than most other platforms offer.

How do I contact customer support for Forte Valbit?

Use the live chat on the website or email support. They’re available 24/7 and respond pretty fast.


The Ultimate Explanation of Strategy

Disclaimer

This post is intended to be the end-all be-all of explanation about Strategy (MSTR) and its Bitcoin accumulation strategy (about the length of a 14-page double-spaced essay). It is meant to comprehensively explain each aspect of Strategy and counter common misconceptions or straight-up lies. Since you are reading this, I will assume you at least understand the basics of Bitcoin as an asset (blockchain technology, why it's valued, fixed supply, etc). This is not financial advice. The information is up to date as of: 7/22/2025

Table of Contents

  1. Core Thesis
  2. Common Stock ATM - (MSTR)
  3. Convertible Bonds
  4. Preferred Shares
  5. Corporate Structure
  6. Risk Management
  7. Simple Example of Yield
  8. Conclusion

1. Core Thesis

Strategy’s Bitcoin strategy is built on a simple thesis: Bitcoin is the superior long-term store of value in a world of fiat currency debasement. Instead of sitting on a depreciating dollar balance sheet or buying underperforming bonds, Strategy has chosen to convert its cash and future cash flows into a Bitcoin treasury. Their long-term goal is to utilize a flywheel financial strategy to continually add Bitcoin on their balance sheet using a variety of capital raising techniques.

Their primary mission is to provide the common stockholder with long-term (5 years+) value and out performance of Bitcoin. This mission is accomplished through the delivery of Bitcoin Yield - a proprietary key performance metric that measures the rate at which Strategy increases its Bitcoin holdings per share. In other words, the company will not just hold Bitcoin, but deliver more Bitcoin per share to investors than they could obtain by holding spot BTC themselves.

I will now describe the various ways that Strategy raises capital in-depth to provide yield.

2. Common Stock - (MSTR)

Raising capital through the sale of company equity (partial ownership) is their primary and most simple way to acquire money for their bitcoin buys. In all likelihood, you are on this subreddit because you are a common stockholder of Strategy. This means that you own equity in the company and are the direct recipient of the effects of Bitcoin Yield. A key tool in the strategy is the At-The-Market (ATM) offering program, which allows Strategy to raise capital efficiently through equity issuance. The ATM allows Strategy to issue common stock directly into the open market at the current price through a designated broker.

In classical finance, when investors hear that their company is selling stock, they immediately get scared of dilution. When more shares are cutting up the pie that is market cap, each slice will be smaller after the completion of the sale. Strategy is different in this regard as their sales of stock are accretive to the shareholders. MSTR trades at a premium to the holdings of their Bitcoin, which is most directly represented by the mNAV (Market Net Asset Value). So when they trade at a 2x Mnav, that means the market is willing to pay twice the market rate on their held Bitcoin. I will explain why this premium is justified in section 7.

Historical mNAV premium

When they sell stock, they can capture this premium and convert it directly to hard assets on the balance sheet. This is a simple arbitrage that allows Strategy to add more Bitcoin to their balance sheet than shares that get issued. Here is a simple example using numbers as I write this:

MSTR is trading at a 1.82× premium. Then:

BTC per share = $422 ÷ 1.82 ≈ $232

When they sell a share of MSTR that represents a $190 accretion of Bitcoin through the captured premium.

It is important to note that MSTR is the lowest offering in the capital structure of Strategy. That means if they were forced to liquidate or go bankrupt, bond and preferred holders would get paid out before common stockholders. MSTR is designed to be the most volatile and fastest-growing offering that Strategy has. It is meant to be the fastest racehorse among all equities on the wider market. Its large historical IV (implied volatility) raises the premiums for options contracts, which allows its options market to be many times larger than stocks of similar market cap.

Comparison of volatility

MSTR has the most risk, but will also benefit the most through explosive growth as the strategy is executed. This is what to hold to gain BTC per share over time.

3. Convertible Bonds

We are now entering the section where we cover debt and leverage. Strategy uses intelligent leverage to safely juice the balance sheet through borrowing fiat currency. In this regard, they are essentially shorting fiat by borrowing it to buy Bitcoin. Such a prospect is inticing considering the large US government deficit and the necessity for them to continually print money. Fully explaining fiscal dominance would require another 5 pages of macroeconomics, so I will leave it to you to research that.

Convertible bonds are hybrid financial instruments that combine features of debt and equity. They are issued as bonds, meaning the issuer (Strategy) borrows money from investors and promises to repay the principal at maturity. The issuer is often required to pay periodic interest payments (coupons). However, convertible bonds include an option for bondholders to convert their bonds into a predetermined number of the issuer’s common stock when certain conditions are met. These bonds are meant to provide the holder with downside protection through the repayment of principal and the ability to participate in much of the upside from common stock. The convertible bond market is quite small, and in 2025, Strategy accounted for 30% of its entirety in the US.

Understanding the exact terms of these convertible bonds is vital to understanding the risk management of Strategy and how they are a good deal for the company.

An overview of current convertible bonds

This is a lot of numbers, but it's not too complicated to understand. The important thing to note is at what price the bonds (debt) will convert into common stock and when these bonds will reach maturity (forced principal repayment if not converted). These bonds have their maturity spread from 2028 to 2032, so the entire $8 billion obligation will not come due at the same time. You may have already noticed that the common stock is currently trading above the conversion price for a majority of these bonds. Each bond has different terms, but at a certain agreed-upon date, Strategy can force conversion into shares as it pleases.

So why are these bonds considered a good deal? Firstly, they are unsecured, which means the principal is not required to be paid in Bitcoin and there is no liquidation price or margin call. So Bitcoin can trade at $1, and the bondholders cannot force Strategy to sell their Bitcoin to ensure payment of principal. Secondly, that ability for Strategy to forgo principal repayment through the conversion mechanism allowed them to take on very cheap debt (low coupon payments) and essentially perform a superior common stock ATM. In the same way that the common stock ATM works, they can buy more Bitcoin than shares they will be forced to issue. The convertible bonds are more accretive because when they convert to shares, they have already bought Bitcoin a while ago when it was at a much lower price.

These bonds are on the way out, as Strategy has stated in their most recent presentation. While they do represent a good deal, they are not as flexible as preferred shares (Section 4). Bond issuance is a tedious process, and they likely want to simplify their debt structure moving forward. They expect that all of these bonds will be converted to stock by 2029. The only way I see them issuing convertible bonds again is for a negative coupon (the bond holder has to pay Strategy). At first glance, this sounds insane, but the institutions that purchase these bonds often perform convertible bond arbitrage, which is a complicated actively managed hedging strategy that involves staying delta neutral through shorting the common stock. That means that these institutions can still guarantee a return on investment even while paying for the privilege of holding the bonds. Convertible bond arbitrage is a complicated topic, and I do not have the space to include it in this post.

4. Preferred Shares

Preferred shares (or preferred stock) are a class of equity securities that combine features of both stocks and bonds. Unlike common stock (MSTR), preferred shares do not have voting rights, do not have residual ownership in the company, and are superior in the capital structure. Preferred shares are how Strategy intends to target the credit markets, with each one providing the holder a different exposure to the yield curve. Each one currently has, or soon will have, their own ATM offering. All of these are perpetual which means there is no maturity date or repayment of principal (but their dividend will have to be paid forever unless certain conditions are met). I will now describe each preferred share and its terms.

This helps provide context for how each preferred share meets the demands of different credit investors

STRK- Strike is what they call "structured Bitcoin". It pays an 8.00% cumulative fixed dividend per annum on a $100 liquidation preference (each share pays out $100 in the event of liquidation), equating to $8 per share annually ($2 per share quarterly). These dividends are payable in cash, Class A common stock (MSTR), or a combination. This preferred is cumulative, which means that if they miss a payment period, the unpaid dividends will accumulate and have to be paid later.

Holders can convert STRK into Class A common stock (MSTR) on any business day in the last month of each quarter (March, June, September, December) at an initial conversion rate of 0.1000 MSTR shares per STRK share. If STRK trades at $100 per share, its economic conversion price is $1,000 per MSTR share. So basically, if MSTR is trading at more than 10x of STRK, you can capture a gain when converting. The convertibility allows these shares to be taken off the balance sheet as the price of MSTR increases. Again, this is advantageous to Strategy as they can buy Bitcoin now with cheap debt and convert it to shares later once Bitcoin has appreciated. STRK allows investors to capture the upside of Bitcoin price movements while also taking home a nice dividend (hedge funds, risk-adverse growth investors, etc).

STRF- Strife is the "crown jewel" of Strategy, which will sit at the very top of the capital structure (once the convertible bonds have been converted). This preferred share is meant to act as a long-term bond that is the safest and most senior yield provided by Strategy. It essentially acts as the main rival to the 30-year US treasury bond. It pays a 10.00% cumulative fixed dividend per annum on a $100 stated amount (liquidation preference), equating to $10 per share annually. If dividends are unpaid, dividends compound at 10% plus an additional 1% per annum, escalating up to 18% until settled. STRF is not convertible, which makes it a pure income play. This appeals to risk-averse investors seeking high yields without the volatility of MSTR (Pension funds, insurance companies, etc).

STRD- Stride is the true junk bond of the group. It is lowest in the capital structure among the preferreds and offers the highest dividend yield. It has the same terms of STRF (10% dividend for $100 liquidation preference), but with some very key differences. Stride is non-cumulative, which means that if a dividend is payment is missed, Strategy has no obligation to accrue the dividends for later payment. This adds risk to STRD, which justifies its higher dividend yield. STRD is also not convertible to common stock. STRD is meant to appeal to high-conviction investors that are willing to take on more risk to achieve higher dividend payments.

STRC- Stretch is the high-yield savings account / yield-paying stable coin of Strategy. Stretch pays a cumulative, variable dividend rate starting at 9.00% per annum on a $100 stated amount (liquidation preference), equating to $9 per share annually (~$0.75 monthly). This is the only share so far that offers monthly payments as opposed to quarterly. The dividend rate adjusts monthly based on the one-month term Secured Overnight Financing Rate (SOFR), with strict limits preventing reductions greater than 0.25% per month. Unpaid dividends accrue with interest, compounding monthly until paid. Stretch is designed to trade as close and as stable as possible to its liquidation preference. STRC targets short-dated credit and acts as a superior (higher yield and backed by Bitcoin) money market fund. As I am writing this, the IPO has not yet been released. STRC is callable (Strategy can buy holders out) for $101 per share plus accumulated, unpaid dividends (including interest), or the greater of $101 or the average of the last five trading days’ sale prices for tax-event redemptions.

This is how they intended to keep STRC trading at par

These 4 preferred shares are the primary way Strategy intends to leverage the balance sheet for the foreseeable future. The use of the ATM allows Strategy to dynamically issue these shares to meet the needs of the credit market as they arise. The general idea is to issue these shares to buy Bitcoin with the raised capital. As Bitcoin appreciates more than the dividend obligations on a yearly basis, Strategy will capture an accretive gain on its Bitcoin holdings. Again, it goes back to: acquire more Bitcoin than you have to issue shares to cover obligations. So far, each of these preferred shares has traded upwards in the open market, which has lowered their effective yield. The market is willing to pay more money to get a smaller dividend % as shown in the graph below. The higher premium on the shares, the more money Strategy can raise while paying out a lower yield.

This graph shows the effective yield of the preferred shares over time

5. Corporate Structure

Governance is led by a five-person board, with Michael Saylor, the CEO and Chairman, as the figurehead. As of February 2025, Saylor’s voting power is at ~46.8% from his stock holdings (as more shares are issued he will continue to lose voting power). The other directors, like President Phong Le and three other independent board members, ensure compliance with the SEC. The management team, including Le and CFO Andrew Kang, is paid in stock options so they are aligned with the interests of the common shareholder. The SEC requires that Strategy maintains independent boards to oversee audit compensation and nominations for top-level positions. They are also audited independently by KPMG. Due to its regulatory environment of oversight by the government, Strategy does not view public proof of Bitcoin reserves as necessary (and can even pose risks due to targeted hacking). Also consider that Gary Gensler (the most anti-crypto SEC chair ever) presided when Strategy was performing their bitcoin operations. That is to say: yes, they have the coins!

Each offering of Strategy is positioned in a specific location among the capital structure. The convertible bonds are at the very top, but the others are positioned as follows:

Overview of all current offerings by seniority

6. Risk Management

Bitcoin is a volatile asset, and no one can say for sure that it will still be around far in the future from now,. At the end of the day, Strategy and its treasury always has the ability to crash to $0. What I mean to say is that the risk of Bitcoin will translate to the risk of holding Strategy (this should be obvious, but I'm covering my bases). You must determine for yourself if you believe Bitcoin has a large or low amount of long-term risk.

So now that we have established Bitcoin risk, we must examine the additional risk of holding Strategy over spot Bitcoin. It is important to note that MSTR does not trade as a 1 to 1 leveraged proxy of Bitcoin. So if you are trading Strategy in the short-term, do not expect perfect correlation. Strategy has time and time again stated that their goal is to provide value for long-term holders (5+ years minimum), so your call options are not a priority for them.

In the longer term, the main risk is leverage. As has been explained previously, their debt obligations are not callable and in the case of the bonds have several years to be converted before maturity is reached. Strategy is not some teenager playing with margin on Robinhood. They have quite a few employees who have done quite a bit of work to ensure that their credit risk is managed. They have ensured, for the past 5 years, that even during the worst crypto bear market in history. Bitcoin would need to have an 80%+ crash and would need to stay at such reduced levels for more than 3 years before Strategy would become financially strained to the point where a sale of Bitcoin would be forced. Anyone who is highly knowledgeable in the Bitcoin market would know that at this current time, such a depression would be extremely unlikely to take place.

The other primary risk would be that for yield to continually be provided to shareholders, a constant influx of new capital is required. This is where you get the common critique of: MSTR is a Ponzi scheme. This statement is blatantly false for two reasons. Firstly, the definition of the scheme requires that there is no real asset, promises of safe returns (Saylor admits that if Bitcoin dies, so do they), and intensive fraud (MSTR is very public and has heavy oversight as previously discussed). Secondly, if you are unaware, the equity and credit markets are very large (over $300 trillion combined). So that means that there is a very large pool of capital that has yet to enter Strategy or Bitcoin.

So how can we be confident that Strategy will be able to draw in this large amount of capital? On the equity side, we have indexes. So when a person goes to buy QQQ (NASDAQ ETF), for example, each dollar of that ETF is split amongst all the holdings held within the index. The larger the market cap of the company, the larger share of that dollar is sent to it. This means that MSTR can get more and more passive inflows from the wider equity market as its capitalization grows. Recently, MSTR has qualified to enter the S&P 500, which is the largest and most popular of all indexes. We are entering a world in which, as your grandparents or coworkers put money into their 401k or market ETFs, Strategy will obtain an ever-growing passive inflow of capital. On the credit side, people simply want a safe way to make income. The higher yield of Strategy offerings makes their preferred shares extremely competitive compared to other options such as treasury bonds. All in all, Strategy has a solid foundation for continuing to capture capital for its Bitcoin treasury.

To summarize: Strategy has a risk-managed path to capturing a massive amount of capital for the foreseeable future. You might ask: Well, what if more money does run out? Once we reach that point, several decades from now, we will be in an entirely different world. Strategy could act as the largest Bitcoin bank in the world at this point, but we can only speculate as of now.

Note: As long as Bitcoin has a long-term CAGR of above approximately 10% they will be able to cover their debt obligations through the issuance of common stock without diluting the shareholders of Bitcoin. Historical CAGR has never been below 15% annualized over any period greater than 3 years (even in the depths of the crypto winter).

This illustrates how equity issuance can cover current yearly obligations

7. Simple Example of Conservative Yield

You're buying one share of MicroStrategy for $422. That share gives you exposure to about $230.60 worth of Bitcoin (At 1.83 mNAV). This means you're paying a premium of $191.40 just to get Bitcoin exposure through MSTR instead of buying Bitcoin directly.

Now assume Strategy achieves a 10% yield every year — meaning the Bitcoin held by MSTR grows steadily by 10% annually (10% is far lower than any year so far). We're not assuming Bitcoin's price goes up, just that the company keeps increasing its Bitcoin per share at a 10% rate. Each year, the Bitcoin portion of your MSTR share (currently worth $230.60) grows by $23.06.

At that rate, it will take about 8.3 years for the Bitcoin yield alone to make up for the $191.40 premium you paid. Then after this point you will have more Bitcoin per share than if you had just held spot Bitcoin in the first place.

Here is a basic formula to calculate when you break even in Bitcoin terms

8. Conclusion

Strategy is truly a pioneer of novel corporate finance. We have never before seen a hard asset like Bitcoin, so it makes perfect sense that we are going to see some new financial wizardry. Strategy is a black hole that sucks in more and more capital and deposits it into Bitcoin so it can continue to grow larger in capitalization which allows for further capital raising. They have positioned themselves as the apex predator of Bitcoin accumulation since they hold the biggest stack, lowest cost basis, and most collateral to capture the massive credit market. Each security they issue just makes their other securities more attractive in the market (more collateral for preferreds or more yield for common stock), so that means they can keep their financial flywheel spinning. Now you have an advantage because you have an understanding of how they intend to dominate the future. This was a very long explanation that 99.9% of the population does not understand (you must know Bitcoin and corporate finance, which is not very common, as I have seen). I hope this has helped you to make more informed decisions and how you view my favorite company.

In Short: If Bitcoin wins, Strategy wins HARDER

MSTR winning

Sources

https://www.strategy.com/

http://www.youtube.com/@strategysoftware

https://strategytracker.com/mstr?charts=performance-comparison%2Cbitcoin-price%2Cperformance-nav-premium&timeRange=all