Baek Hoon-jong

MicroStrategy (MSTR) common stock is significantly undervalued relative to its 850,000 Bitcoin holdings. The market is overreacting to a minor 32 BTC sale and treating the situation as a witch hunt against Michael Saylor. The company has ample cash reserves (7 months of dividend coverage) and low leverage (~10% asset-based). Other Bitcoin treasury companies are stepping in to buy, absorbing any selling. With long-term smart money expected to rotate back to Bitcoin, MSTR's combination of a massive Bitcoin treasury and a depressed stock price will be on their radar, supporting a rebound.

Strategy’s perpetual preferred stock STRK (referred to as STRC) dipped to $82 from its $100 liquidation preference due to leveraged unwind, not structural failure. At $89, it offers a clear reversion trade back to $100 plus a high current dividend (~11.5%). The company is expected to raise the dividend to 12–13% at the June 30 shareholder meeting. The dip has created a buy opportunity for long-term capital seeking both the $11+ per share reversion gain and elevated dividends. The STRK mechanism naturally attracts buyers when the price falls and sellers when it gets overvalued, making the current level attractive.

In the next Bitcoin upcycle, leveraged treasury companies will significantly outperform. MicroStrategy (MSTR) remains the dominant leader with the largest Bitcoin holdings and innovative perpetual preferred financing. Metaplanet in Japan is a strong second with a similar model and recent acquisition of a securities firm to expand its financial products. Both will attract massive capital when Bitcoin turns up.

Large exchanges like Coinbase will benefit from transaction fee revenue during the next crypto bull market as the industry concentrates among a few top players, making Coinbase a solid investment.

Robinhood is innovating with AI crypto trading services and will also benefit from fee-based revenue, positioning itself for the next bull market.