Unchained Is Strategy's Model Unraveling? What is Driving the Recent Rout and Where It Can Go From Here - Ep. 971
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Dec 5, 2025 
In a riveting discussion, Mark Palmer, a Senior Equity Research Analyst at The Benchmark Company, and Vinny Lingham, co-founder of Praxos Capital, tackle MicroStrategy's recent struggles. Palmer advocates for the company's potential despite cash and dilution concerns, while Lingham critiques its preferred stock model, calling it 'vampiric' to common shareholders. They debate the impact of MSCI risk and the role of regulatory clarity in shaping the future of Bitcoin holdings, providing insights on the crypto landscape and investment strategies.
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Perpetual Preferreds Create Permanent Buying Power
- MicroStrategy built a unique capital structure with perpetual preferreds to provide near-permanent capital for buying Bitcoin.
- Mark Palmer views that permanent capital as a strategic advantage for acquiring a volatile asset like Bitcoin.
Choose The Right Vehicle For Bitcoin Exposure
- If you want pure Bitcoin exposure, buy Bitcoin directly instead of MicroStrategy common stock.
- Consider call options for leveraged exposure rather than holding commons diluted by preferreds.
The Heavy Annual Cash Burden On Strategy
- MicroStrategy has issued nearly $7 billion of perpetual preferreds plus $8.2 billion of converts, creating substantial annual cash obligations.
- The company now faces roughly $789 million in annual interest and dividend obligations versus limited free cash flow.