Strategy Supports Market Structure Bill Amidst $8.2B Quarterly Loss

Strategy, formerly known as MicroStrategy, recently reported an $8.22 billion quarterly net loss, or $24.45 per diluted share, a sharp reversal from the $32.60 profit recorded in the same quarter last year.

The company's financial struggles notwithstanding, Strategy quickly shifted its focus to crypto policy and backed the market structure bill, arguing that clearer digital asset regulations could improve institutional participation and lower its funding costs.

Under the proposed market structure bill, securities-like tokens would fall under the SEC, while digital commodities would be regulated by the CFTC. This clearer jurisdictional split could make institutional investors more comfortable participating in the market.

The company has relied heavily on raising capital this year, securing $17.06 billion through at-the-market equity programs and $7.53 billion from STRC preferred issuance, a 254% increase. However, Strategy pays 12% on STRC because the preferred shares continue trading below their $100 stated value.

Strategy's leadership believes that clearer regulation encourages institutional adoption rather than restricting it, which could lead to lower funding costs and eventually resume per-share accretion if the company's Bitcoin yield exceeds its hurdle rate.