What you’re
actually
buying with MSTR
- A leveraged Bitcoin holding company (plus a legacy software biz). The company legally changed its name to Strategy Inc. in August 2025, but the ticker is still MSTR.
- Huge BTC stack. Latest SEC filing: 628,791 BTC held as of Aug 3, 2025; they even bought 21,021 BTC between Jul 28–Aug 3 for $2.46B (~$117k per BTC). That’s the scale.
- Financial engineering is the engine. They’ve been funding purchases via at‑the‑market (ATM) programs and new preferred stock (e.g., July 29 “Stretch Preferred” IPO). Translation: dilution + leverage in exchange for more BTC.
Why some folks love the “all‑in” MSTR thesis
- Torque to Bitcoin. MSTR behaves like Bitcoin with a built‑in amplifier; during bull runs, its premium to net asset value (NAV) can expand. (VanEck’s breakdown: premium + leverage + capital structure are the drivers.)
- Accounting tailwinds. New fair‑value rules caused giant unrealized BTC gains to flow through recent results, juicing reported earnings in Q2’25. Hype fuel, for sure.
Why “100% all‑in” is still a widow‑maker move
- Premium risk cuts both ways. That NAV premium expands and compresses; MSTR has historically swung more than BTC and has had deeper drawdowns than the coin itself. (Think ~90% drawdowns vs. ~80% for BTC in past cycles.)
- Dilution/complexity risk. ATMs, convertibles, preferreds—the capital stack can change fast, affecting per‑share BTC exposure. Read those 8‑Ks.
- Headline/earnings whiplash. Fair‑value accounting means reported profits/losses can swing wildly with BTC’s price—without any change to the underlying strategy.
A high‑conviction
but
smarter approach (examples, not advice)
If you’re fired up on MSTR, consider “core–satellite” instead of 100%:
- Core BTC exposure (ETF or spot) + Satellite MSTR for torque. That keeps upside vibes while capping premium + dilution risk. (The premium/leverage mechanics are well‑explained in VanEck’s note.)
- Want even more spice without going all‑in on the common? There are MSTR‑linked ETFs:
- MSTP (GraniteShares 2× Long MSTR Daily) – levered, short‑term trading instrument.
- MSTW (Roundhill MSTR WeeklyPay) – options‑income overlay on MSTR exposure.
These are complex; know what you’re holding.
One‑minute due‑diligence checklist (do this before giant bets)
- Holdings check: Grab the latest BTC count straight from the SEC (8‑Ks are frequent).
- Premium to NAV: Estimate with a quick formula:
Premium ≈ (MSTR market cap ± net debt) ÷ (BTC holdings × BTC price)
If premium is rich, your risk isn’t just BTC—it’s premium compression too. (Background on why that matters: VanEck & Nasdaq analyses.) - Funding firehose: Scan recent filings for new ATM or preferred issuance—these shift per‑share BTC.
- Know thy pain threshold: If a 60–90% drawdown would wreck your plans or sleep, scale the position. (Historical context via Nasdaq.)
About that quote
The “100% MSTR” rallying cry floating around online traces back (among other places) to Eric Kim’s blog riffing on the idea earlier this year. It’s a mood—just make sure your math matches your motivation.
Bottom line: Love the energy! If you want Bitcoin plus rocket boosters, MSTR can deliver—but it’s a leveraged, premium‑sensitive ride. Big dreams are awesome; just harness them with position sizing, check the filings, and let your strategy—not adrenaline—do the compounding. 🚀
Not investment advice. If you’d like, I can also spin up a quick worksheet that estimates today’s implied premium and your portfolio’s drawdown tolerance using the latest filings.