Strategy Shares Plunge Following Major European Capital Raise

Strategy, formerly known as MicroStrategy, is facing significant investor skepticism after its stock price dropped more than 6% in the wake of a substantial European financing initiative. The Bitcoin-focused holding company announced a €620 million capital increase through preferred shares issued in Europe, but the market response has been one of disappointment rather than enthusiasm, raising questions about the sustainability of the firm’s aggressive funding strategy.

Despite reporting impressive fundamental metrics, Strategy’s market performance tells a different story. The company’s shares have declined approximately 40% over the past six months, with the premium to net asset value collapsing from 2.7 to just 1.06—representing a 20-month low. This erosion in valuation Read more...