Michael Saylor built Strategy Inc. around a straightforward idea: raise money to buy Bitcoin, then never sell it. Over time, that simple bet has turned far more complicated. After years of raising money to buy more Bitcoin, Strategy now has three investor groups to satisfy: Bitcoin investors, equity traders seeking leveraged exposure to the token, and preferred shareholders collecting cash dividen...
Michael Saylor built Strategy Inc. around a straightforward idea: raise money to buy Bitcoin, then never sell it. Over time, that simple bet has turned far more complicated. After years of raising money to buy more Bitcoin, Strategy now has three investor groups to satisfy: Bitcoin investors, equity traders seeking leveraged exposure to the token, and preferred shareholders collecting cash dividends. That arrangement worked when Bitcoin was rising and investors were eager to finance ever-larger purchases. Now all three are under pressure. The token is trading near a four-month low after the latest selloff, while Strategy’s stock has fallen about 70% from last year’s high. And STRC — the preferred share vehicle that has become central to funding new Bitcoin purchases — is trading below par, making it harder to raise fresh capital. The strain came into focus this week after Strategy disclosed it had sold 32 Bitcoin worth about $2.5 million. The sale was tiny relative to its roughly $54 billion holdings, but symbolically significant. It marked the company’s first Bitcoin sale since late 2022 and challenged a core promise that the cryptocurrency would be held indefinitely. The question facing Saylor is no longer simply whether Bitcoin rises. It is whether Strategy can simultaneously protect the value of its Bitcoin holdings, support the stock and maintain confidence in its preferred shares. “I don’t see it as possible for him to protect all three,” said Richard Galvin, founder of Sydney-based digital-asset manager DACM. “One of them will have to take the pain to protect the other two.” The challenge is that the actions that help one group can undermine another. Selling Bitcoin can raise cash and support preferred shareholders, but it weakens the company’s core Bitcoin accumulation story. Issuing more stock can fund additional Bitcoin purchases, but risks diluting common shareholders. Protecting the balance sheet may reassure creditors and preferred investors, yet limit ...
(RTTNews) - The Canadian stock market's benchmark S&P/TSX Composite Index climbed to a new record high Thursday morning, rebounding strongly from previous session's setback.
(RTTNews) - The Canadian stock market's benchmark S&P/TSX Composite Index climbed to a new record high Thursday morning, rebounding strongly from previous session's setback.
The dollar index (DXY00 ) today is down by -0.26%. The announcement of a ceasefire between Israel and Lebanon knocked WTI crude oil prices down more than -3% today and lowered inflation expectations, which might persuade the Fed to ease monetary policy, a negative factor for the dollar. Also, today's...
The dollar index (DXY00 ) today is down by -0.26%. The announcement of a ceasefire between Israel and Lebanon knocked WTI crude oil prices down more than -3% today and lowered inflation expectations, which might persuade the Fed to ease monetary policy, a negative factor for the dollar. Also, today's...
EU trade chief Maros Sefcovic has called for practical approaches and “meaningful discussion” to tackle the growing trade concerns between Brussels and Beijing, following his meeting with China’s chief international trade negotiator, Li Chenggang, on the sideline of a ministerial meeting at the Organisation for Economic Cooperation and Development (OECD) in Paris. Sefcovic opened his press confere...
EU trade chief Maros Sefcovic has called for practical approaches and “meaningful discussion” to tackle the growing trade concerns between Brussels and Beijing, following his meeting with China’s chief international trade negotiator, Li Chenggang, on the sideline of a ministerial meeting at the Organisation for Economic Cooperation and Development (OECD) in Paris. Sefcovic opened his press conference on Thursday by stressing the urgency of crafting policy responses to the non-market practices...
quantic69 Shares of Dell Technologies ( DELL ) have rocketed nearly 100% over the past 30 days, and while they've retreated around 10% over the last five days, they're still up 230% year-to-date. We asked Seeking Alpha analysts Deep Value Investing and Michael Del Monte if they thought Dell was overvalued. Deep Value Investing : On paper, yes, Dell ( DELL ) is definitely overvalued if you compare ...
quantic69 Shares of Dell Technologies ( DELL ) have rocketed nearly 100% over the past 30 days, and while they've retreated around 10% over the last five days, they're still up 230% year-to-date. We asked Seeking Alpha analysts Deep Value Investing and Michael Del Monte if they thought Dell was overvalued. Deep Value Investing : On paper, yes, Dell ( DELL ) is definitely overvalued if you compare its 23x forward P/E multiple with some of its peers in the AI rack theme. For example, Super Micro Computer ( SMCI ) is trading at 18x forward earnings and Hewlett Packard Enterprise ( HPE ) at 16x. That said, the reason I own Dell (and not its peers) has nothing to do with its valuation. When the broader markets are expanding, I’m looking at growth, and the 757% year-over-year increase in its AI server business is difficult to ignore. Moreover, the company appears to be supply constrained, which is a positive, as I discussed in my post-earnings coverage. In comparison, HPE’s ( HPE ) server revenue grew by only 33% year-over-year in the last quarter. As for SMCI ( SMCI ), the story got messier after the March developments, so I’m not that impressed by its 123% year-over-year growth rate in Q3 FY26. Among the AI server names, I like Dell ( DELL ) the most, and the reason is its AI growth story, not its valuation. Michael Del Monte : Dell ( DELL ) shares have experienced a significant uplift in recent months as demand for AI-optimized and traditional servers becomes more prevalent in revenue and the backlog. Given the exceptionally high level of growth, the market appears to be pricing Dell ( DELL ) shares as an AI growth company rather than a single-digit growth, traditional IT infrastructure company. While my model suggests 11% upside with a price target of $482 per share based on the historical trading ranges, shares could easily be repriced upward if the growth trajectory remains intact, pricing shares closer to my blue-sky scenario at $675 per share in time. Top Technolo...
After rising from hourly associate to CEO, Walmart’s John Furner says embracing change was key—a view shared by execs at Macy’s, Xerox, and Informatica.
After rising from hourly associate to CEO, Walmart’s John Furner says embracing change was key—a view shared by execs at Macy’s, Xerox, and Informatica.
Getty Images Two months ago, I published a piece here on Seeking Alpha titled " The HBM Shortage May Make Micron A $1 Trillion Giant ." At the time, Micron ( MU ) was a $420 billion company. My thesis was that the high bandwidth memory, or HBM, supply deficit, backed by $1.15 trillion in hyperscaler Capex, would force a multi-year repricing of the stock. Based on my DCF model, I had a fair value o...
Getty Images Two months ago, I published a piece here on Seeking Alpha titled " The HBM Shortage May Make Micron A $1 Trillion Giant ." At the time, Micron ( MU ) was a $420 billion company. My thesis was that the high bandwidth memory, or HBM, supply deficit, backed by $1.15 trillion in hyperscaler Capex, would force a multi-year repricing of the stock. Based on my DCF model, I had a fair value of $987 per share. I said that it would be a $1 trillion company within 18 months. But what I gave 18 months to happen happened in about 8 weeks. Micron is now a $1.2 trillion company. It is the single largest position in my long-term portfolio. My average cost basis is around $160. I am up nearly 600%, and it is about 38% of my entire long-term portfolio. I have never had a single position that large. It didn't get that large because I kept adding to it; it got that large because the stock just kept going up. And that right there is the problem. This piece is me explaining why, because I think the reasoning matters a lot more than the trade. My thesis did not break. It got pulled forward. Everything I wrote in March about the HBM shortage is still intact. What changed is the price, and it made Micron into an expensive call option on the AI bubble continuing to inflate. Why I Am Trimming My Position Over the past couple of days, I have sold about 65% of my MU position. This is by far the biggest trim I have made to any position in my portfolio. And I want to explain my reasoning in detail because I know many of you may have followed the original thesis. The thesis I published on March 23rd is still intact. That’s why the stock is up more than 160% in two months. Every data point I laid out in that original piece still holds. Today it is trading near the top end of its historical range for a memory company. Now, you can argue that Micron is no longer "just a memory company." I made that argument myself. But the market has now heard that argument and has repriced the stock acc...
The stock market has spent the past two years rewarding one theme above all others: artificial intelligence. Capital has flowed into a relatively small group of companies, pushing the valuations of AI leaders to levels few investors would have imagined in 2023. But what happens when two of the world’s most anticipated private companies suddenly ... Can Wall Street Absorb $3.5 Trillion in New IPOs?...
The stock market has spent the past two years rewarding one theme above all others: artificial intelligence. Capital has flowed into a relatively small group of companies, pushing the valuations of AI leaders to levels few investors would have imagined in 2023. But what happens when two of the world’s most anticipated private companies suddenly ... Can Wall Street Absorb $3.5 Trillion in New IPOs? SpaceX and Anthropic Could Trigger the Biggest Liquidity Stress Test
It's tempting to be sure. Although the stock's made no net progress since its collapse in early 2020, the company's backlog continues growing to record levels. It just received a huge number of orders from China , too, where a state-supported competitor operates. Still, most investors are hesitant to take a swing, and understandably so. The company in question is passenger jet maker Boeing (NYSE: ...
It's tempting to be sure. Although the stock's made no net progress since its collapse in early 2020, the company's backlog continues growing to record levels. It just received a huge number of orders from China , too, where a state-supported competitor operates. Still, most investors are hesitant to take a swing, and understandably so. The company in question is passenger jet maker Boeing (NYSE: BA) . Here's some food for thought if the ticker is on your watch list but not yet in your portfolio. Continue reading
Members of the billionaire Glazer family have been debating whether to sell their stake in Manchester United after decades of ownership often blighted by fan protests. Tiwa Adebayo explains. (Source: Bloomberg)
Members of the billionaire Glazer family have been debating whether to sell their stake in Manchester United after decades of ownership often blighted by fan protests. Tiwa Adebayo explains. (Source: Bloomberg)