Disclaimer: The analyst who wrote this piece owns shares of Strategy (MSTR).

Over the past two weeks, Strategy (MSTR) has refrained from utilizing the at-the-market (ATM) equity program on its common shares to fund bitcoin

purchases, choosing instead to use the programs on its two perpetual preferred stocks.

The choice most likely reflects the narrowing premium between the company’s share price and its multiple net asset value (mNAV) or, more colloquially, the difference between its market cap and the value of its bitcoin holdings, and allows Strategy to raise funds to buy more BTC without diluting shareholders’ stakes in the company.

When the share price trades close to the underlying bitcoin asset value, issuing common shares via ATM becomes less attractive. Such offerings are typically only advantageous when executed at a meaningful premium.

Strategy funded its most recent 1,045 BTC purchase using proceeds from its two perpetual preferred stock ATMs: 59.18% from the STRK offering and 40.82% from the STRF one. These preferred stocks have demonstrated strong lifetime returns of 35% for STRK and 24% for STRF. This gives the company greater flexibility to continue accumulating bitcoin while preserving upside for common stock investors.

There’s also an additional dynamic at play, according to analyst Jeff Walton. The effective dividend yields of STRK and STRF have steadily declined from about 10% even though the yield on the benchmark U.S. 10-year Treasury has remained relatively constant at 4.5%. That’s because the dividend yield falls as the price of the stock increases, a bond-like behavior that makes the preferred shares more attractive in a stable rate environment.

Strategy is likely to reengage the ATM on its common stock if the share price rises significantly, particularly if it exceeds twice the mNAV, which would allow room for dilutive issuance at a premium. While the common stock ATM remains the primary mechanism to fund dividend obligations on the preferred shares, Strategy retains the option to use the preferred stock ATMs for this purpose as well, depending on market conditions.

The following article is a guest post and opinion of Mike Romanenko, CVO & Co-founder of Kyrrex.

The Markets in Crypto Assets Regulation (MiCA) seeks to protect investors and make the rules clear for European crypto companies. However, according to Mike Romanenko, CVO and Co-Founder of Kyrrex, they keep worried about how having strict rules could slow down new ideas, hurt little startups, and help the big dogs get bigger. In addition to looking at things that could go right or wrong in the future, we need to talk about how MiCA takes advantage of the fact that things are not centralized, supporting fair competition and protecting the people who invest their money.

Myth 1: MiCA Stifles Innovation in the Crypto Industry

It seems that the new Markets in Crypto Assets Regulation (MiCA) coming out of Europe will be a big game changer for those looking to get into cryptocurrencies. Having some official regulations should help make things safer and more legal for regular people looking to invest, and that’s definitely a good thing. Typically, you need to get approval from the government before doing anything in crypto. It seems like it would be a lot easier for the big tech bros of Silicon Valley to set up shop than for some students in a garage trying to create the next Ethereum.

The following are some of the most important issues related to MiCA:

• Shuts down companies. Some blockchain entrepreneurs may consider relocating to more crypto-friendly regions due to compliance costs.
• Larger companies may have an easier time absorbing compliance costs, potentially giving them an advantage.
• Impacts Europe’s Standing in the World. The EU might lag behind other regions in embracing crypto innovation as a result of MiCA.

MiCA’s regulatory requirements may present challenges for innovative startups, potentially leading some to relocate to more crypto-friendly regions. Although protecting investors is crucial, others argue that overly stringent regulations could immobilize the same industry they are meant to support.

Myth 2: MiCA Applies Only to EU-Based Companies

The businesses that operate inside the European Union are subject to the MiCA, although its effects might be felt outside of it. If you want to serve clients in the EU, as a non-EU crypto company, you are obligated to obtain a MiCA license, without which you are prohibited from doing so, unless it’s an exclusive initiative of the client, as stated in MiCA. Key Impacts of MiCA imply:

• Global Influence, Limited Scope. Despite being EU-specific, MiCA may influence global standards for crypto regulation, but it remains an EU-specific framework.
• Arbitrage in regulations. Some businesses might move to areas that are more crypto-friendly to minimize compliance requirements.
• Effect on Customers in the EU. Non-EU companies that cater to European consumers may have to adjust to MiCA’s regulations.

Businesses must carefully manage compliance issues as crypto regulations tighten while striking a balance between innovation and market access.

Myth 3: MiCA Neglects Decentralized Finance (DeFi) Platforms

MiCA does not directly address DeFi, but it may evolve in the future to include some aspects of decentralized finance. DeFi projects may encounter ambiguity, regulatory gaps, or future crackdowns as authorities try to incorporate them into pre-existing frameworks in the absence of clear guidelines.

The following challenges are the main problems with MiCA and DeFi:

• The uncertainty of regulations. MiCA’s unclear DeFi regulations make compliance difficult.
• Risky Innovation. Future overregulation might hinder the expansion and uptake of DeFi.
• The role of Europe in DeFi. DeFi projects might be forced to relocate to more crypto-friendly jurisdictions as a result of the ambiguity.

DeFi is still in regulatory limbo, which raises questions about its future in the EU even though MiCA creates a framework for centralized crypto.

Myth 4: MiCA Will Lead to Market Centralization

MiCA’s regulatory requirements may present challenges for smaller startups, potentially leading to more centralized markets. The crypto industry may become more centralized as a result of independent innovators being forced out of the market by the high licensing costs, legal requirements, and constant regulatory scrutiny.

The regulatory requirements of MiCA may be too much for smaller projects, particularly those in developing blockchain sectors, which may force them to close or move to jurisdictions with more lenient laws. This change may reduce competition, restrict consumer choice, and ultimately impede innovation in the European crypto market.

MiCA might strengthen the dominance of centralized exchanges and custodians by erecting obstacles to entry, which would concentrate power in the hands of well-known financial institutions and significant crypto businesses. Although the regulation seeks to improve security and transparency, it runs the risk of weakening the decentralized ideas that initially spur blockchain innovation, which could cause Europe to fall behind in the global crypto race.

Myth 5: MiCA Guarantees Investor Protection Against All Risks

By imposing compliance, transparency, and security requirements on EU crypto companies, MiCA regulation improves investor protection. Although it aids in the prevention of fraud and poor management, it is unable to eliminate risks such as market volatility, project failures, or defects in smart contracts. Non-custodial wallets and DeFi platforms are still unregulated, putting users at further risk.

The most significant advantages of MiCA for Investors include the following aspects:

• Crypto companies must adhere to stringent security and operational guidelines in order to strengthen consumer protection.
• Greater transparency guarantees that businesses reveal financial information, risks, and whitepapers.
• By imposing accountability, fraud prevention lessens market manipulation and scams.
• By creating a clear regulatory framework, legal clarity boosts market confidence.
• Increased Market Stability lowers uncertainty by guaranteeing that businesses follow established rules.
• Investor Compensation Mechanisms: These provide regulated companies with some safeguards against bankruptcy or poor management.

MiCA enhances regulatory oversight, but it doesn’t take the place of risk awareness and investor due diligence. Regulation can lessen risks in the still-evolving crypto sector, but it cannot eliminate them.

How the market benefits from debunking misconceptions about MiCA

Debunking misconceptions about MiCA can help foster a clearer understanding, promoting balanced innovation and market growth. While a clear understanding aids companies and investors in successfully navigating the new framework, misunderstandings can result in needless anxiety, regulatory resistance, and lost opportunities.

The crucial benefits of Debunking MiCA Myths imply:

Informed Investors reduce fear and uncertainty, helping investors navigate regulations confidently.

• Regulatory Clarity encourages compliance by dispelling false fears about overreach or bans.
• Market Growth attracts businesses by highlighting MiCA’s role in legal stability, not suppression.
• Better Innovation helps startups adjust to regulations without unnecessary restrictions.
• Global Competitiveness positions the EU as a leader in responsible crypto regulation, attracting capital and talent.

By addressing misunderstandings, the market can adapt, innovate, and thrive under MiCA rather than resist it.

The European crypto market faces both opportunities and challenges as a result of the Markets in Crypto-Assets (MiCA) regulation. Although its goal is to improve investor protection and regulatory clarity, there are still worries that it could hinder innovation, give preference to big businesses, and ignore decentralized finance. A healthy crypto ecosystem depends on finding the ideal balance between regulation and adaptability. Businesses and investors can successfully navigate MiCA by clearing up misunderstandings and adjusting to regulatory changes, guaranteeing that Europe maintains its competitiveness in the global blockchain market.

• Investing the last funds

• Unverified exchangers

• Trusting an incompetent opinion

• Belief in the truth of the legend and the eternal work of the platform

• Wrong choice of tariff

• Storing profit on the company’s balance sheet

As you know, HYIP projects are high-risk investments, a game, but not for children. There are a huge number of platforms for earning money for every taste: with different profitability, deadlines, payment systems. As in childhood – you come to the store with games and choose the one you like. But, not knowing the rules of the new game, there is a chance to lose. The task is to introduce you to these rules in order to increase your chances of winning.

Perhaps the first thing not to forget is the risks. The rule – “Invest as much as you can afford to lose” – you need to learn and not forget all the time while you are in the “game”. Not observing it, newcomers make a serious mistake – they begin to borrow money from friends, banks, sell property. It is important here at first to create principles for yourself that you will not violate under any circumstances. Such a scheme will protect you from impulsive decisions and large losses.

You should not invest your last funds in the hope that the project will help you to multiply them. Again, no one guarantees that the payment will be made successfully and the project will not close earlier.

Using unverified exchangers

It is not so important which payment system you work with, it is much more important where you change your funds. In order not to stumble upon fraudulent currency exchange sites and not lose your money, use only proven resources. You can find information about them on thematic forums and blogs.

Now you are familiar with the general rules that you need to know to work successfully in the industry. Let’s move on to the next section, which will tell you how to choose the right project.

The first thing with which investment activity in HYIP begins is, of course, the choice of the project and already here it is possible to designate an error – haste and delay.

In such a case as the search for a project, it is necessary to observe the golden mean: you should not rush and invest in the first company you come across without studying it, but also, choosing the one you like, waiting for months is also not an option. It is necessary to observe the site for several days: whether there are any delays in payments, whether its work is stable and only then it will be decided.

If you liked the project – do not be lazy, read all kinds of reviews on it on blogs and forums. It is not recommended to invest in a company that has no reviews, because nothing is known about its real activities. Also, you should not trust only good reviews about the project, because it can easily be a deception.

Trusting an incompetent opinion

“The project is promoted = safe” or “The project has just started = safe” – forget such and similar phrases. Each site is individual and no one knows when it will cease its activities.

So, the stage of choosing a project has passed and now that you have finally decided, it’s time to talk about mistakes related specifically to the company.

Very often, novice investors are inspired by what the company is doing – the legend of the project – and make a big mistake. It should not be taken for truth that the platform implements its activities, for example, through trading in forex markets, investing in cryptocurrency or sports betting. Statements about how a company receives money, as a rule, have nothing to do with reality. Also, do not believe in the eternal work of the platform, which is often promised by the administration.

Of course, the desire to make a lot of money from minimal investments is absolutely understandable, but this can have negative consequences. So, choosing a long-term tariff (for example, for 50 days) and requiring large investments (let’s say $ 3000), you risk not just being left without profit, but also losing your funds, since there is no guarantee that the project will not cease its activities before your time comes to take money at the tariff. That is why it is profitable to invest in short-term tariffs, where the amount of investments is also minimal.

The resulting profit is often stored by the participants on the company’s account and this is also a mistake. It is not necessary to save money on the balance of the platform, since no one knows when the platform will suspend its activities. It is necessary to withdraw the funds received immediately, otherwise you will also lose everything.

In order to increase their profits, some project participants often reinvest, that is, invest the resulting profit. You should not get carried away with such a scheme, it is better to take your investments and invest again only a part of the percent.

Don’t invest all your money in one company! A good scheme is the distribution of the total amount over several projects. Investing 100% of your funds in one company, you will lose everything if it stops its activities. And if your money is on the account of several projects, then if one of them is closed, you will lose only part, not all.

Being “in the game” keep in touch with the company! Read reviews and forums daily. And, if there is no connection with the project administration, immediately withdraw money from the platform balance and do not invest more. Control the process!

Perhaps the most important thing in the HYIP industry is to remember that you should not blindly trust information from project sites, statistics provided by administrators, people who actively invite you to join the company, saying that this is easy earnings. Yes, it’s really easy money, but are you ready to risk your funds? That is why it is necessary to treat such sites exactly as a game: follow all the rules listed above.

And remember: to get out on time means to win!

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