$STRC

Strategy Inc. reduced Bitcoin purchases to 250 BTC ($21.5M) in October, redirecting funds to buy back preferred shares yielding 12.31%. The company holds $5.5B in dollar instruments for liquidity. MSCI may exclude Strategy Inc. from global benchmarks due to Bitcoin's dominance over its software business, risking $2.8B in passive-fund outflows. Shares fell 9.56% to $136.83, with a P/NAV ratio of 0.83x.

Michael Saylor, Strategy's executive chairman, revealed that credit investors prefer cash over Bitcoin as collateral. Strategy's 12% yield preferred stock (STRC) fell below $100, prompting a $1.5 billion share buyback and a cash dividend reserve. Saylor now advocates for a mix of Bitcoin and cash for digital credit, with Strategy holding 3.5 years of dividends in cash. STRC trades near par, and Saylor expects it to tighten 200-300 basis points.

Michael Saylor, founder of MicroStrategy (MSTR), stated that a potential removal of MSTR from MSCI indexes would have limited impact, as the funds tracking MSCI are relatively small. He criticized MSCI's treatment of Bitcoin (BTC), arguing it shows bias against digital assets. Saylor defended MSTR's status as an operating company, comparing it to banks and insurers.

Strategy's stock fell 10% after MSCI index news, but its Bitcoin holdings, worth $69.1B (up 7.9% from cost), remain profitable. The company holds 848,250 BTC, bought at an average of $75,444. Other Bitcoin-related stocks also dropped, with MARA and Riot falling 9.6% and 11.5% respectively. Strategy plans to start daily dividends in November.

Insiders at PepsiCo (PEP), Costco (COST), BlackBerry (BB), CRISPR Therapeutics (CRSP), MicroStrategy (MSTR), GameStop (GME), and Innovative Industrial Properties (IIPR) made notable share transactions between October 12 and 16. Key transactions included PEP director Robert Pohlad buying 184,646 shares for ~$23.69M and GME CEO Ryan Cohen purchasing 844,130 shares for ~$22.77M.

MSCI's updated rules may remove Strategy from its indexes, risking billions in outflows. CryptoQuant CEO Ki Young Ju believes the risk is priced in, while Strategy's Michael Saylor downplays the impact.

Strategy shares fell 9.56% to $136.83 on Oct. 16 after the company proposed daily dividends for STRC preferred stock in November, pending shareholder approval. The plan offers $1 per share at a 12% annual rate, with daily payments of $0.03 or $0.04. Shareholders must approve amendments at a meeting on Oct. 28, and the updated certificate must be filed by Nov. 1.

Strategy Inc. (MSTR) traded 31.7 million shares on Oct. 16, nearly four times JPMorgan Chase's 8.4 million shares, as MSTR fell 9.6% while JPMorgan rose 1.2%. MSTR holds 848,250 BTC, with recent purchases funded partly by stock sales. The company's share price and Bitcoin holdings may move independently.

Strategy acquired 250 BTC for $21.5 million, bringing its total holdings to 848,250 BTC. Barclays raised its price target for Strategy (MSTR) to $175 from $160, maintaining an Overweight rating.

Nasdaq 100 had its worst week in 18 months, with chipmakers under pressure. Apple (AAPL) faces U.K. antitrust regulators over iPhone tap-to-pay rules. MicroStrategy (MSTR) shares fell as MSCI's new index screening approach may impact its inclusion. Uber (UBER) shares were highlighted by Guggenheim with a 'Buy' rating and $125 target. Tesla (TSLA) showcased its next-gen Roadster, seen as a precursor to a SpaceX (SPCX) merger.