Bitcoin Treasury Companies Are ‘Textbook Bubble Chart’ as MSTR Loses $100

Bitcoin treasury companies are showing the classic signs of a popped bubble. Strategy stock (MSTR) has crashed through the $100 support level, while a prominent analyst calls the whole sector "the textbook bubble chart."

The selloff has spread to MicroStrategy's preferred shares and now threatens the funding model that built the entire category. Strategy alone holds more Bitcoin than the next nineteen public companies combined, so its troubles set the tone for everyone.

Strategy Inc., the firm formerly known as MicroStrategy, trades under several symbols. Two matters most here.

MSTR is the common stock. It works as a leveraged proxy for Bitcoin (BTC). Because the company borrows to buy more BTC, the shares tend to amplify Bitcoin's swings in both directions. There is no dividend, and the risk sits at the top of the scale.

STRC, nicknamed "Stretch," is a perpetual preferred stock. It was engineered to sit near its $100 par value and pay a steady monthly dividend yielding roughly 11% a year. It targets income investors seeking exposure without volatility.

The other key difference appears if trouble hits. Preferred holders rank ahead of common shareholders. In short, MSTR is the

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/crypto/articles/bitcoin-treasury-companies-textbook-bubble-185051980.html)