Bitmine Immersion Technologies (NYSE:BMNR) Chair Tom Lee compared Strategy Inc. (NASDAQ:MSTR) to a fighter jet that’s trailing the formation, and that its rivals are trying to target and take it down.
Lee Confident Of Strategy’s Big Recovery
In a conversation with Skybridge Capital founder Anthony Scaramucci, Lee stated that the future of Strategy is closely linked to Bitcoin’s performance.
“So, I think as long as Bitcoin’s price recovers, Strategy is going to stage a big recovery,” the Wall Street analyst noted.
Lee said Strategy was like a B-17 combat aircraft from World War II that had slipped back from the formation.
“That’s who the fighters are going to attack and try to take down,” he added.
Lee’s Advice To Saylor
Lee, who oversees corporate affairs of his Ethereum (CRYPTO: ETH) treasury firm, weighed in on what he thinks is Saylor’s best defense right now.
“I would say to me, anything they can do to either increase the dollar amount of the equity cushion or the amount of cash is really what makes the most sense,” Lee said. “If I were Michael Saylor, I would probably think that MSTR and raising cash through selling the common might be the best strategy.”
Will Strategy Weather The Storm?
Lee’s advice coincided with the announcement of Strategy’s new capital framework, which includes a USD Reserve policy, a preferred and common stock buyback program and a Bitcoin monetization program that allows for tactical BTC sales to fund operations.
Strategy remains the world’s largest corporate owner of Bitcoin, holding over 847,363 BTC with an average acquisition cost of $75,651 per coin. With Bitcoin trading near $60,000, unrealized losses on the underlying holdings have grown to almost $14 billion.
Concerns about Strategy’s financial strength have risen after it disclosed Bitcoin sales earlier in the month, undermining the “never sell” thesis that bullish investors had counted on. Since the disclosure, the MSTR stock has plunged 38%.
Price Action: At the time of writing, BTC was exchanging hands at $59,291.74, down 0.51% over the last 24 hours, according to data from Benzinga Pro.
Strategy shares rose 0.73% in after-hours trading after closing 12.60% higher at $92.68 during Monday’s regular trading session.
Benzinga’s Edge Stock Rankings indicate that MSTR is underperforming, exhibiting weak price momentum across short-, medium-, and long-term horizons.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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