How to Trade Strategy Inc. (MSTR) on Hyperliquid

What Is Strategy Inc.

Strategy Inc. (NASDAQ: MSTR) is the company formerly known as MicroStrategy, which completed its rebrand in August 2025. What started as a business intelligence software firm has become something entirely different: the world's first and largest publicly traded Bitcoin treasury company.

As of mid-March 2026, Strategy holds 761,068 BTC — roughly 3.6% of all Bitcoin that will ever exist. The company's CEO Michael Saylor has publicly stated a target of accumulating 1 million Bitcoin by the end of 2026, which would require purchasing another ~239,000 BTC in roughly nine months.

The legacy software business still generates revenue, but it's a rounding error compared to the Bitcoin treasury operation. Strategy's market cap, stock price, and investor base are almost entirely driven by the size and performance of its BTC holdings. When you trade MSTR, you are trading a leveraged view on Bitcoin wrapped inside a corporate capital structure.

The Capital Machine Behind the Buys

Strategy funds its Bitcoin acquisitions through three mechanisms, collectively known as the 42/42 Plan: $42 billion in at-the-market (ATM) equity sales and $42 billion in fixed-income securities over three years.

In practice, the funding has evolved. The company raised $25.3 billion through ATM equity sales in 2025 alone, making it the largest U.S. equity issuer that year. But common stock dilution has limits — MSTR is down roughly 70% from its October 2025 peak near $457, which makes selling more shares increasingly painful.

Enter STRC, Strategy's perpetual preferred stock. With over $10 billion outstanding and a dividend rate that has climbed to 11.5%, the preferred equity engine now carries more than $1 billion in annualized dividend obligations. The most recent major purchase — 22,337 BTC for $1.57 billion in mid-March — was funded primarily through STRC issuance rather than common equity, signaling that the cheaper capital sources are drying up.

On top of that, Strategy carries approximately $6 billion in convertible debt collateralized by its Bitcoin holdings. The layered capital stack means MSTR behaves like a leveraged Bitcoin ETF with corporate overhead and financing costs baked in.

Why MSTR Trades Like Leveraged Bitcoin

MSTR doesn't just track Bitcoin — it amplifies it. When BTC rallies, MSTR tends to outperform because the equity sits below layers of debt and preferred stock that have fixed claims. The residual value accrues to common shareholders with convexity. When BTC drops, the effect reverses: fixed obligations don't shrink, so common equity absorbs a disproportionate share of the loss.

This dynamic played out sharply in recent months. Bitcoin fell from around $126,000 in October 2025 to the mid-$60,000s by February 2026 — a roughly 47% drawdown. MSTR fell over 70% in the same period, from $457 to as low as $104. The stock now trades at roughly 0.87x its net asset value, meaning the market is pricing MSTR at a discount to the Bitcoin on its balance sheet — a reversal from the historical premium that fueled the entire acquisition strategy.

For traders, this leverage profile is the whole point. MSTR gives you amplified Bitcoin exposure without touching BTC directly, and the HIP-3 perpetual on Hyperliquid adds another layer of leverage on top. At 10x, you're effectively running a highly leveraged position on a leveraged Bitcoin proxy — manage your risk accordingly.

Key risks to size around: a sustained Bitcoin bear market below Strategy's ~$75,700 average cost basis could force asset sales or restructuring; rising STRC dividend obligations compress the equity value even when BTC is flat; and ongoing share dilution from ATM sales creates persistent headwinds for the per-share BTC backing.

The HIP-3 Perpetual Contract

The MSTR HIP-3 perpetual on Hyperliquid tracks the value of one share of Strategy Inc. common stock. It trades 24/7 — unlike NASDAQ, which closes at 4 PM ET — giving you the ability to react to Bitcoin moves, earnings announcements, or Saylor's weekly purchase disclosures in real time.

The contract is available with up to 10x leverage and settles against the underlying equity price. Recent 24-hour volume on the MSTR perp has exceeded $5.7 million, making it liquid enough for most position sizes.

Because MSTR already behaves as leveraged Bitcoin exposure, trading the perp at high leverage compounds that effect significantly. A 5% move in Bitcoin can translate to a 7-10% move in MSTR equity, and at 5x leverage on the perp, that becomes a 35-50% move on your margin. This cuts both ways. Tight stop-losses and disciplined position sizing matter more here than on a vanilla BTC perp.

The perp is particularly useful for hedging. If you hold spot MSTR in a brokerage and want downside protection during off-hours — say, after a hawkish Fed statement drops at 2 PM ET and Bitcoin starts sliding — you can open a short on the Hyperliquid perp while your equity broker is closed. It's also a clean way to express a relative value view: long MSTR perp vs. short BTC perp if you think the NAV discount will close, or the reverse if you think dilution will widen it.

Trading on Hyperliquid

Trade MSTR on Hyperliquid with up to 10x leverage.